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WE  WORK FOR  THE  HAPPINESS  AND PROSPERITY  OF OUR  SOCIETY เราทำงานเพื่อความสุขและความรุ่งโรจน์ของสังคม

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Financial Report and Summary of Operating Result (Units  :  Thousand Bath) 2007 2006

%  increase  (decrease)

Balance Sheet

Current Assets Total Assets Total Liabilities Shareholders’ Equity Registered Capital Paid up Capital No. of Shares  (Million)

996,958 1,967,831 412,900 1,554,932 200,000 200,000 200

741,420 1,795,535 305,974 1,489,562 200,000 200,000 200

34.47 9.60 34.95 4.39 - -

Income Statement

Income from Sales Total Income Cost of Goods Sold Gross Profit Operating Expenses Net Profit After Operating Expenses Profit (Lost)  in Affiliated Companies Net Profit Earning per Share  (Bath)

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1,682,256 1,715,281 1,143,799 538,457 245,754 325,729 - 225,370 1.13

1,719,702 1,747,655 1,139,084 580,618 240,169 368,402 - 269,592 1.35

(2.18) (1.85) 0.41 (7.26) 2.33 (11.58) (16.40)

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1,554,932

1,489,562

1,369,970

1,165,794

1,039,218

412,900

305,974

379,876

299,093

188,718

1,967,831

1,795,535

1,795,846

1,464,888

1,227,936

2546 2547 2548 2549 2550

2546 2547 2548 2549 2550

2546 2547 2548 2549 2550

Total Assets

Total Liabilities

Shareholder’s Equity (Thousand Bath)

1.13

1.35

1,039,218 1,165,794 1,369,970 1,489,562 1,554,932

1.17

2546 2547 2548 2549 2550

1.09

1,715,281

1,747,655

188,718 299,093 379,876 305,974 412,900

0.98

(Thousand Bath)

1,505,999

1,331,937

2546 2547 2548 2549 2550

1,127,898

225,370

269,592

1,227,936 1,464,888 1,795,846 1,795,535 1,967,831

234,175

217,695

196,526

2546 2547 2548 2549 2550

(Thousand Bath)

2546 2547 2548 2549 2550

2546 2547 2548 2549 2550

2546 2547 2548 2549 2550

Net Profit

Total Income

Earning per Share (Thousand Bath)

2546 2547 2548 2549 2550

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(Thousand Bath)

196,526 217,695 234,175 269,592 225,370

2546 2547 2548 2549 2550

(Thousand Bath)

1,127,898 1,331,937 1,505,999 1,747,655 1,715,281

2546 2547 2548 2549 2550

0.98 1.09 1.17 1.35 1.13

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Contents Profile 6 Production 34 Progress 56 Pride 68 People 84 Profit 98 51-ME-001_001-009 Eng_C.indd 5

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THE COMMITMENT FOR  THE HAPPINESS AND  PROSPERITY  OF  SOCIETY 51-ME-001_001-009 Eng_C.indd 6

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Profile

Biography of the Company’s Founder Company Profile Organization Chart Board of Director and Audit Committee Message from Chairperson Audit Committee’s Report Good Corporate Governance Practice

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In business, consciousness is far more important than intelligence because if letting intelligence leads, it will be greatly indulgence. We need to let conscious lead or at least using conscious to regulate intelligence, understand the limitations, not greedy and diligent to do everything with consideration, conscious, not to be discourage, you will live a happy life. Success will come after.

Chukiat  Utakapan (1942- 2002)

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Biography of the Company’s Founder Mr. Chukiat Utakapan was born on May 10th, 1942 at Amphoe Rueso, Narathivas. He was the 4th child of Mr. Ratana and Mrs. Rariab Utakapan and had 6 brothers and sisters. After finished high school from Mahavajiravudh Changwat Songkha School, he  had  continued  his  education  at the  Faculty  of  Arts,  Chulalongkorn University  and  began  his  career  at Tourism Authority of Thailand (TAT). After that, he became a proofreader at Thai Watana Panich Co., Ltd. until he  was  promoted  to  Chief  of  the Editorial  Staffs  at  “Widhayasarn” magazine; a Teacher’s magazine.

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Mr.  Chukiat  had  changed  course  to become  a  public  relation  of  National Housing Authority (NHA). Here, it was regard as the beginning of publishing “Baan” magazine to provide knowledge and a preparation handbook for those who moved into NHA housing project at time when there were shortage of houses during  that  time.

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After found out that he was not suitable with government service and felt that he was saturated, he resigned from the National  Housing  Authority.   He  then gathered his friends and a number of staffs to form “Warasarn Baan Lae Suan Limited Partnership” and started publishing the first issue of “Baan Lae Suan” magazine which was launched in September 1976. Since then, Mr. Chukiat had utilized his experience, knowledge and capability to bring this small business up until it has become “Amarin Printing and Publishing Public Company Limited”. Mr.  Chukiat  had  mentioned  about  his working principles in the “Mareng Khuen Samong (Brain Cancer)” book that; “Amarin Printing and Publishing Public Company  Limited  has  grown  its  business consecutively  until  people  think  that I  have  wide  vision   but  I  think   I am  more  conscious.  My  intelligence  is just  fair  since  I  studied  in  secondary school.   My  teacher  had  noted  in my  annual  school  report  as  “medium

intelligence”.  In business, consciousness is far more important than intelligence because if letting intelligence leads, it will be greatly indulgence. We need to let conscious lead or at least using conscious to regulate intelligence, understand the limitations, not greedy and diligent to do everything with consideration, conscious, not to be discourage, you will live a happy life. Success will come after. It doesn’t have to be completely success, only few successes would be just fine. This will be my life experience – there are a lot of thing I cannot succeed but people often overlook at them and only focus on my successes.” Mr. Chukiat passed away silently on December 10th, 2002 at the age of 60 years and 7 months. …It has been more than 6 years. However, Mr. Chukiat had given Amarin’s people from generation to generation the conscious and intelligence inheritances to continually carry on his knowledge determination which shall never end under this house “Amarin Printing and Publishing Public Company Limited”.

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Company Profile Established  in  September  1976,  Mr. Chukiat had gathered few friends and colleagues to jointly establish a small editorial unit as Warasarn Baan Lae Suan Limited Partnership. It started publish the first issue of “Baan Lae Suan” magazine in September 1976. During that period, the company must rely on outsourced printing house. Subsequently, the printing house was established as Amarin Garn Pim  Limited  Partnership  to  publish  the company’s  owned  magazines  at  the same time also publish for others as well. Although with only few staffs, it was the great beginning resulting in vast business growth subsequently. As a result, the company  needed  to  increase  capital and transform in to public company. The company was registered in the Stock Exchange of Thailand in 1993 and was known as “Amarin Printing and Publishing Public Company Limited”

Within the same year, the company had expanded its distribution business by setting up Amarin Book Center Co., Ltd. to oversee all of the company’s printed matters distribution including setting up retail stores under “Nai Indra Bookstore” name. The name was given by His Majesty the King from his precious literary work “Nai Indra Phu Pit Thong Lang Phra”. Starting from only few groups, reader base has greatly expanded both number of readers and diversified reader group. The company therefore began to publish other magazines to meet readers’ needs by having women magazines called “Praew” and “Praew Sudsapda”. The company has expanded its customer base by launching new & trendy magazines intermittently including Cheewajit, Health & Cuisine, National Geographic - Thai edition, room, WE, Real Parenting, SHAPE and In Style. Simultaneously, the books business

has  grown  side  by  side,  starting from Praew Books in 1992 to publish literatures, short stories and poetry books. At present, the Company has expanded into 14 imprints which produced wide varieties of books from books for small children  to  youth  to  teenagers  that promote imagination, health stories, food, home and garden decoration for readers at all genders and ages. The Company always adopted the “quality” principle which is the company’s main principle as well. Amarin Printing and Publishing Public Company Limited has currently become innovation originated center of knowledge, sense  and  intelligence  through  more than  three  thousand  staffs  that  work efficiently  and  happily  along  these 30 years and to step into the 4th decade with the strong determination as: “We are working for happiness and prosperity of the society.”

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Board of Directors The Audit Committee

Organization Chart

The Audit Committee Office

President Senior Executive Vice President

Chief Exective Officer Assistant Chief Executive Officer President’s Office Director

Accounting and Finance Director

Managing Director Publishing Business Division

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Managing Director Printing Business Division

Human Resources Director

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Board of Director and Audit Committee Mrs. Metta Utakapan Mrs. Supawadee Komaradat Ms. Rarin Utakapan

Chairperson Director Director

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Mr. Charoenchit Na Songkhla Independent Director Member of the Audit Committees Mr. Wathanyu Nathalang Independent Director Chairman of the Audit Committees Mr. Somchai Phagaphasvivat Independent Director Member of the Audit Committees

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Mr. Smat Mr. Cheewapat Mrs. Suphap

Ruangnarong Nathalang Noi-um

Director Director Director

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Board of Directors

Front Row (From Left to Right)  Cheewapat Nathalang Managing Director of Printing Business Division Supawadee Komaradat Senior Executive Vice President  Metta  Utakapan  President & Chief  Executive  Officer  Rarin  Utakapan  Managing  Director  of  Publishing  Business  Division  Back  Row (From Left to Right) Ampawan Boonchouy President’s Office Director Titaya Nilrungsee Assistant to Managing Director of Printing Business Division Buncha Wongthongcharoen Human Resource Director  Theeratorn Sang-ngeon Assistant to Managing Director of Printing Division Achara Taesuwan

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Advertising Director (1) Uraiwan Soonthornhong Advertising Director (2) Praphan Prabhasavat Deputy Managing Director of Publishing Business Division Nuanchan Supanimit Deputy Managing Director of Publishing Business Division Tanaree Pimparu Accounting and Finance Director Jutamas Samitanonda Sales Director of Printing Business Division  Pattrawan Pooltawekiat Editorial Director of Amarin Publishing Services  Ongaj Jira-on Editorial Director of Book Department Bussapakes Wongchaoum Administrative Director of Printing Business Division Amornrat Akkawat Technical Director

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Message from Chairperson Dear Valued Shareholders, In  2007,  the  Company  was successful both in term of turnover and business image showing the Company’s dedication  to  social  benefits  similar to previous years. However, the profit was declined along with the economy slowdown in 2007. 2007 Operating Results The Company’s net profit after tax for 2007 was reported at Baht 225.37 million which was 16.40% lower than that of 2006. The Total Revenue was at Baht 1,715 million which was decreased by 1.85% and earning per share was also decreased from 1.35 Baht to 1.13 Baht. Magazine Business The Company had launched new women magazine, “In Style”, in May 2007. The contents are related to fashion, beauty, celebrities and lifestyles under the copyrights from Time Inc. (USA). Book  Business  In  2007,  the Company’s book sales grew by 7% from 2006 because the Company had received copyright to translate and distribute the world famous book, “The Secret”, which had  enjoyed  very  high  printing  and distribution. Several other high circulation books were “30 ways to prevail one’s destiny” by world famous conductor, Bundit Eungrangsee, and dharma book that  the  Company  was  leading  and pioneering  in  producing  modern  and fun-to-read  dharma  books  such  as

“Einstein met, the Buddha saw” written by Dr. Som Sujira. Tourism Business The Company has opened new routes both domestic and overseas including arranging tours to several  organizations  and  individuals under  new  concept  of  “The  Ultimate Experience with Amarin Tours” by showing numerous tour programs that are different from others agencies both in terms of routes and services which emphasizes on high quality. Therefore, the total revenue was quite satisfactory. Baan Lae Suan Fair The fair had moved and was organized at Impact Exhibition Center Muang Thong Thani for the  second  consecutive  year  in  order  to increase the exhibition area from 25,000 square meters to 40,000 square meters. The fair was well received both from customers and visitors. Television  Program  With  the Company’s new business, “Health Club” aired on Channel 7 every Tuesday from 4.15 - 4.30 p.m., the program was well received  at  a  satisfactorily  level.   The “Baan Lae Suan Magazine on TV” program aired on Channel 9 (MCOT) every Sunday from  3.00 - 3.30  p.m.  The  program  was first broadcasted in February 2006 but was later terminated in June 2007 due to program reschedule at the TV station. Publishing  Services  Business Amarin Publishing Services has grown dramatically by 63% because the market does  need  high  quality  publications

published by professionals who perfectly handling every production steps. Printing Business The Company had invested in the new state-of-the-art machineries and equipments and had appropriately and continuously brought in new production technologies to add or to replace current productions. The Company has concentrated in developing competitive strategies aiming to be the leader in cost reduction, production cost reduction, human resources, machineries and equipments management in order to maximize the full potential. In addition, the  Company  has  aims  to  increase the  revenue  by  adjusting  to  proactive strategies and improving the management in order to maintain current customer base and to expand to new potential market. Outlook for 2008 Although the economy  in  2008  remains  the  same, however,  the  Company  has  intended to  continuously  grow  by  focusing  on business that enhances people’s quality of life and to create good things to Thai families  and  society.   Moreover,  the Company has also aimed to increase sales in new products or through new business channels  in  order  to  maintain  both revenue and profit growth by extending from our existing content in line with the past 30 years. This corresponds to our core  business  which  is  the  Content Business.

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worthwhile and happy living. Book  Business  The  Company focuses  on  producing  books  with international  standard  and  diversified from children book to adult book and fulfills  every  reader  both  in  terms  of knowledge  and  enjoyment  aiming  to promote quality of life of those in the society through reading. The Company plans to publish approximately 350 quality books, representing an increase of 35%, to meet readers’ increasing demand and to expand the market of Thai content into several other languages throughout the world. In 2004, the Company brought its works to the Frankfurt Book Fair in Germany which is the largest book fair in the world. In the past year, the Company

has sold copyrights to other countries such as Italy, Spain, Indonesia, Taiwan and Malaysia. This is regard as the second year of accomplishment in entering into new businesses with bright future. Tour and Training Business In February 2007, The Business Development  Department  including Tourism, Training and TV programs was relocated to Arun Amarin office which was renovated for expanding into Business Learning Center to spread out knowledge to Thai society. Tour Business The Company has created a new concept “The service you can  trust”  for  tour  business  which emphasizes  on  trustworthy  services

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Publishing Business Magazines  The  Company  has a  total  of  11  covers  which  are  women magazine  category  such  as  Praew, Sudsapda, WE, In Style, food and health magazine category such as Cheewajit, Health & Cuisine, SHAPE, mother and child magazine category such as Real Parenting, home and decoration magazine category such as Baan Lae Suan, room, and documentary  magazine  category  such as National Geographic. Around July 2008, the Company will launch the 12th cover which is a new concept magazine that is currently not available in the market. The  magazine  focuses  on  reaching wide group of readers for knowledge, entertainment  and  as  inspiration  for

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by  Amarin  Tour  Department.   The department  has  developed  traveling routes so that they are different and exotic both domestic and overseas with international  standard  including  customized traveling  arrangements  for  several organizations. Training Business This is another quality business that Amarin Training Department  has  immersed  to  create courses under “Learning for better Living” concept providing both knowledge and entertainment by adding the Company’s content to several seminar programs in decorating, food, health, beauty and several skills development such as writing, translating and etc. Television Business In 2007, the Company had only one successful program as previously mentioned. In 2008, the Company plans to produce a newly improved program called “Baan Lae Suan Magazine on TV” and plans to request new air time from appropriate television Channel later. Fair In 2008, the Company will arrange Baan Lae Suan Fair for the 9th year at the Impact Exhibition Center Muang Thong  Thani  covering  the  area  of 40,000  square  meters.  Continuing  from the  past  years,  The  Company  will  also organize the Amarin Book Fair for the 6th   year  and  will  arrange  the  Health, Cuisine & Beauty  Festival  for  the  5 th year at Queen Sirikit National Convention Center. The objective of these fairs is

to create revenue from existing content and to build image and good  relationship between readers, customers and the Company. Amarin Printing Services The Company has placed high importance  on  this  business  because it adds on to current businesses and creates business value added in the comprehensive printed matter to any individuals  or  any  organizations.   The services  will  cover  from  conceptual design, creating manuscript both content and art work, outline, quality control in every steps from editorial work to printing in order to fully meet customers’ needs especially in terms of quality. This will utilize the printing capacity in order to avoid strong competition from external printing for hire which was well accepted by the customer. Printing Business The Company continues to give priority to printing technology and various areas of human resources development in order to continuously keep its printing quality. The Company is in the midst of purchasing  new  land  at  a  strategic location not far from the current printing house to support future printing expansion by reserving some area readily to build new printing house according to business growth. Dear Valued Shareholders, The Company was selected as one of the five best Thai companies in

the  world  forum  organized  by  Forbes magazine,  the  world  famous  financial magazine, which ranks the company with revenue less than one billion US dollars, with high business growth during 20042006 as well as from 200 companies in Asia including Australia and New Zealand. Amarin  Printing  and  Publishing  Public Company Limited would like to express our   sincere   appreciation   to   the shareholders,  customers,  investors, business alliances and every contributor for their consistent support and follow Amarin Printing and Publishing Public Company Limited works throughout these times. We would also like to extend our thanks to the management and all staffs for their cooperation in bringing the vision of Mr. Chukiat Utakapan, the Company’s founder,  who  created  the  corporate culture for everyone to walk in the same direction  that  is  to  appreciate  our customers, colleagues and our jobs and our society. Lastly, we would like to ensure everyone  relating  the  Company  that Amarin Printing and Publishing Public Company Limited will always be the professional organization focusing on conducting business for the happiness and prosperity of the society.

Metta Utakapan Chairperson and President

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Audit Committee’s Report The Company’s Audit Committee consists  of  3  independent  directors, Mr.  Wathanyu  Nathalang  who  also  serves as  Chairman  of  Audit  Committee,  Mr. Charoenchit Na Songkhla and Mr. Somchai Phagaphasvivat.   The  Audit Committee has fulfilled its duties and responsibilities assigned  by  the  Board  of  Director’s. In 2007, 5 Audit Committee meetings were held to handle important missions summarized  below: 1.  Review  the  accuracy  and adequate disclosure of the company’s quarterly financial statements for the year 2007 through meetings with the auditors, internal  auditors  and  the  company’s management who are responsible for preparing financial reports. The committee also discussed and exchanged ideas until satisfy such that financial statements show accurate financial position and overall operation  according  to  accounting standards.

2.  Review legal practices related to the Company’s businesses. 3.  Review  and propose internal control improvements concerning internal control system to ensure appropriateness and effectiveness. 4.  Provide internal audit operational  guidelines  including  internal audit examination that Internal Audit Department  has  conducted  during the  year  and  approve  Internal  Audit Department’s audit plan 2008. 5.  Evaluate  the  Company’s Risk Assessment and recommend risk preventive measures that may occur. 6.  Assess   the  Company’s management policies and recommend marketing  strategies  corresponding to  future  publication  business  growth including recommending human resources development which will improve efficiency and effectiveness of its personnel.

The  Audit  Committee  has performed  its  duties  independently in  deliberation  of  related  areas  with sound  cooperation  from  the  Company’s management, Internal Auditors and the Company’s Auditor. The Audit Committee gave their opinions that the preparation and disclosure of the Company’s financial information are accurate, complete and credible  and  the  Company’s  internal control  system  is  adequate  and  in compliance  with  laws  and  regulations governed by the Security and Stock Exchange and other relevant commercial laws. The Audit Committee has selected and recommends the appointment of the Company’s Auditor for the Ordinary Shareholders’ Meeting to appoint Miss Prapasri Leelasupa or Miss Sukanya Sutheeprasert from A.M.C. Auditing Firm to be the Company’s auditor for 2008.

Wathanyu Nathalang Chairman of the Audit Committees

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Policies and Missions of Audit Committee 2.  To ensure that the Company has appropriate and effective internal audit and control system in cooperation with Auditors and Internal Auditors. 3.  To consider and ensure that Company’s  disclosures  are  accurate complete, especially in the area of relating transactions or any conflicting transactions that may occur. 4.  To select and recommend the appointment of the Company’s Auditor based on independence, reliability and sufficient audit quantity as well as auditor experiences.

5.  To ensure that the Company’s operations are in compliance with Security and Stock Exchange laws and regulations and related commercial laws. 6.  To prepare Audit Committee’s audit  report  by  disclosing  in  the Company’s annual report and signed by the Chairman of the Audit Committee. 7.  To  perform  other  duties assigned by the Board of Directors and agreed by the Audit Committee.

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Main policies and missions of Audit Committee are to serve as a vital tool  or  mechanism  to  ensure  Good Corporate Governance in the Company. Audit Committee’s policies and missions are outlined below; 1.  To ensure that the Company’s financial  reports  are  accurate  and adequately  disclose  through  its  collaboration with the Company’s Auditors, Internal Audit Department Manager and responsible management. To review audit reports  and  Auditors’  recommendation and internal audit reports.

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Good Corporate Governance Practice

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under the Company’s business by setting Corporate Governance Policies which has important features as follow; Shareholders’ Rights The  Company  has  followed Good  Corporate  Governance  against shareholders and related parties equally and justifiably by sending invitation letter together with annual report and power of attorney to all the shareholders no less than 14 days prior to the annual shareholders’  meeting  so  that  the shareholders can review the information before attending the meeting. At the same time, the Company has always announced time, location and meeting agenda both in Thai and English through newspaper and  has  given  opportunities  to  the shareholders to ask and express their opinion at all time. All of which were recorded in the minutes of the meeting. Related Parties’ Rights The Company also fairly and equally gave precedence to every group of related parties’ rights whether they are

internal related parties such as debtors, creditors,  business  partners,  authors, translators, government officers or related others under law and regulations related to related parties rights. Shareholders’ Meeting The Company has set the annual general shareholders’ meeting within 4 months after the fiscal year end. The meeting was arranged to give equal rights to all shareholders by sending invitation letter  with  details,  meeting  agenda, supplementary documents with the Board of Directors’ opinions, power of attorney, list  of  independent  directors  for shareholders to select who will be given proxy to attend the meeting on their behalf as well as map showing the meeting location to shareholders no less than 14 days in advance. In the invitation letter, there will be details of documents at which shareholders need to bring along to the meeting in order to keep their meeting rights. Hence, the Company has allocated sufficient meeting time and gave equal opportunities to shareholder to

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Good Corporate Governance Policies The  Board  of  Directors  has realized the significance and has intended to conduct business under Good Corporate Governance. In accordance with the Code of Best Practices for listed companies in the Stock Exchange of Thailand, the Company has reinforced the organization’s system  to  be  more  effective,  to  be transparent  and  to  increase  its  business competitive  capabilities  in  order  to increase trust to shareholders, investors and related parties. Moreover, the Board of Directors also have authorities to administer the Company’s business in ensuring the Company to be in line with commercial rules and regulations, setting the Company’s business direction and administering the Company’s management to be transparent and to comply with policy. In addition, the Board of Directors also strengthen the audit control procedures to be more effective by appointing Audit Committee to investigate for accuracy, quality, credibility and transparency of accounting & finance system, audit system and internal audit and all other systems

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express their opinions and ask questions in the meeting. The Company’s Board of  Directors  consisting  of  Chairman, Chairman  of  the  Audit  Committee, Managing  Directors  and  Directors attended the shareholders’ meeting to answer all the questions. Every issues and opinions raised in the meeting will be recorded in the minutes of the meeting for the shareholders verification.

Conflict of Interest In order to prevent any conflict of interest, the Board of Directors has cautiously administered by setting clearly written policy and procedure for granting related transactions for those transactions between the Company, its subsidiaries and affiliated companies and by following the Stock Exchange’s principles by setting price and condition as if they were done with  outsiders.   Any  important  inter companies transactions will be disclosed in  details  on  costs,  counterparties, business reasons and necessities in the annual report and annual information disclosure form (56-1). Code of Conduct The Board of Directors holds business policies with integrity, fair and honest  in  treating  its  employees, communities,  general  society  and  all related parties. It has adhered to principles in creating good and right thing, sustaining

neutrality, independently presenting news information. For all above requirements, the Company has set the Code of Conduct regarding the ethics of management team and employees, has continuously tracked their commitment based on ethics and has set disciplinary punishment in case of violations. Balancing Non-Management Directors The Board of Directors consists of 9 directors, five are from management team, one is a non-management nonindependent  director  and  three  are independent directors. Thus, the Company has totaling of 3 independent directors which is 33.33% to all directors. Directors and Management Remuneration The Company has clearly set Director Remuneration policy in line with the industry and approved by the shareholders meeting. In 2007, the remuneration for 4 independent directors and internal non-management director were 1.2 million Baht. For management directors, they only received monthly salary and bonus which can be divided individually as follows;

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Leadership and Vision The  Board  of  Directors  has possessed  leaderships,  visions  and jointly set policies, strategies, objectives and the Company’s business plans. The Board of Directors has also supervised management team to perform based on policies and plan with highest efficiency by  maintaining  continuous  business operating policies through technology, personnel and strategies development to have more variety and to comply with the Company’s Business Plan. In addition, the Board of Directors also administer the management to expand the business to gain market share by creating new magazines  and  printed  matters  with diversified subject matters and adhere

to creating good things to families and society generally under the determination of  “We  work  for  the  happiness  and prosperity of our society.”

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Name

Position

Amount (Baht)

meeting. The Company’s Secretary will send out the meeting invitation together 360,000 with agenda and other documents at 360,000 least 7 days prior to the meeting so that the  directors  have  sufficient  time  to 360,000 review the information before attending 120,000 the meeting. In 2007, the Board of 1,200,000 Directors  had  5  meetings  while  the Audit Committees had 5 meetings whereas The Board of Directors Meeting the minutes of the meeting are approved The Company has set the annual by Board of Directors and are available Board of Directors Meeting in advance for audit at any time. and also set special meetings as necessity including  regular  performance  review

1. Mr. Wathanyu Nathalang Independent Director and Chairman of the Audit Committee 2. Mr. Charoenchit Na Songkhla Independent Director and Member of the Audit Committee 3. Mr. Somchai Phagaphasvivat Independent Director and Member of the Audit Committee 4. Mr. Smat Ruangnarong Director Total

In  2007,  the  Company  paid the remuneration to its management directors as employees and Management Committee in form of salary and annual bonus with total of 14.53 million Baht.

Directors Name The Board of Directors The Audit Committee Time Attended Time Attended Mrs. Metta Utakapan 5 5 5 1 Mrs. Supawadee Komaradat 5 5 5 Mr. Cheewapat Nathalang 5 5 5 5 5 5 1 Ms. Rarin Utakapan Mr. Smat Ruangarong 5 1 5 Mrs. Suphap Noi-um 5 1 5 Mr. Wathanyu Nathalang 5 1 5 5 Mr. Charoenchit Na Songkhla 5 1 5 5 Mr. Somchai Phagaphasvivat 5 1 5 5 029

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Subcommittee The  Board  of  Directors  has appointed  subcommittee  to  assist  in administering the Company’s businesses such as the Audit Committee with list of directors and their duties limit according to details stated in the organizational structure.

Internal Control and Audit System The  Board  of  Directors  gave priority  to  internal  control  both  at management and operational levels by clearly set its officers’ responsibility limit and administering authority in writing. The Company’s Internal Audit Department is responsible  to  inspect  all  operating systems to ensure that the Company’s

most important operation and financial activities are performed in line with guidelines set in the Company’s business policy. Along with the above mentioned responsibility, the Company’s Internal Audit Department is also responsible for ensuring the Company’s operations are in compliance with related laws and regulations. This will lead to Good Corporate Governance. The structure of Board of Directors consisted on 3 sets of directors as follow: The Board of Directors as of

December 31, 2007 consisted of 9

directors as follow: Name Position 1. Mrs. Metta Utakapan Chairperson 2. Mrs. Supawadee Komaradat Director 3. Mr. Cheewapat Nathalang Director 4. Mrs. Suphap Noi-um Director 5. Mr. Smat Ruangnarong Director 6. Ms. Rarin Utakapan Director 7. Mr. Wathanyu Nathalang Director 8. Mr. Charoenchit Na Songkhla Director 9. Mr. Somchai Phagaphasvivat Director

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The Board of Directors Report The  Board  of  Directors  is responsible for the Company’s and its subsidiaries’ Financial Statements and financial information which appear in the annual report. The financial statements were  prepared  in  accordance  with Accounting Standard and were accurately carried out and carefully judged together with Auditors’ view such that the Company’s financial statements is accurate based on important aspects in general accounting practices.  Besides,  important  information was adequately disclosed in the notes to financial statements based upon truth, completeness and regularity.

Investors Relation The Board of Directors has placed high importance on accurate, completeness and  clear  information  disclosure  to investors, security analysts in accompany with financial and general information disclosure  as  well  as  importance information that affects the Company’s share price by announcing information to all investors, analysts and related parties through the Stock Exchange of Thailand on-line media and the Company’s website at www.amarin.com In addition, the Company also gives opportunities to investors, security analysts to visit the Company’s business to learn more about operating information both at the present and in the future.

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The Management Committee as of December 31, 2007 consisted of 18 directors as follow: Name

Position

Mrs. Metta Utakapan Mrs. Supawan Komaradat Mr. Cheewapat Nathalang Ms. Rarin Utakapan Mr. Prapan Prabhasavat Mrs. Nuanchan Supanimit Ms. Achara Taesuwan Ms. Uraiwan Soonthornhong Mr. Theeratorn Sang-ngeon Ms. Titaya Nilrungsee Mr. Ongaj Jira-on Ms. Tanaree Pimparu Ms. Bussapakes Wongchaoum Mr. Bancha Wongthongcharoen Mrs. Pattrawan Pooltawekiat Ms. Ampawan Boonchouy Mr. Amornrat Akkawat Ms. Jutamas Samitanonda

President & Chief Executive Officer Executive Vice President Deputy Chief Executive Officer and Managing Director - Printing Business Deputy Chief Executive Officer and Managing Director - Publishing Business Deputy Managing Director - Publishing Business Deputy Managing Director - Publishing Business Advertising Director 1 Advertising Director 2 Assistant Managing Director - Printing Business Assistant Managing Director - Printing Business Editorial Director - Book Department Accounting and Finance Director Administrative Director - Printing Business Human Resource Director Editorial Director - Amarin Printing Services Director of CEO Office Technology Director - Printing Business Sales Director - Printing Business

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The Audit Committee as of December 31, 2007 consisted of 4 directors as follow: Name Mr. Wathanyu Mr. Somchai Mr. Charoenchit Mr. Samart

Position Nathalang Phagaphasvivat Na Songkhla Pojanapanichkul

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Authorities, Duties and Responsibilities of the Board of Directors 1.  Set the Company’s overall strategic direction and objective. Approve operating policies and directions as proposed by management team. Oversee and ensure the efficiency and effectiveness of management team to create the economic value added to the Company and its shareholders in line with the approved policies. 2.  Set the Code of Conduct for members of the Management Committee and employees in accordance with the Company’s guidelines. 3.  Always follow up the Company’s operations to ensure that Management Committee and management team perform under established laws and policies. 4.  Execute effective Internal Control and Internal Audit system. 5.  Administer  the  Company’s management  team  by  specifying  policies,

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Chairman of the Audit Committee Audit Committee Audit Committee Audit Committee Secretary procedures and risk management which must cover liquidity risk, investment, market, operational, reputation and legal. Hence, the Board of Directors must approve the above policies and review operating strategies and such policies continuously. 6.  Appoint members of Management Committee, members of the Audit Committee and other committees as appropriate and necessary to oversee management system to be in line with set policies. 7.  Assign one or more directors to act on behalf of the Board. 8.  Consider roles and responsibilities of  other  sub-committees  and  changes  in organization including changes that is significant to operation of the sub-committees. 9.  Counter balance the management authorities and/or major shareholders to be within appropriate limit by placing importance to ratio or amount of independent directors in

the Company’s Board of Directors. 10.  Oversee  information  distribution procedures to ensure that the Board of Directors receives  sufficient  information  from  the management team to perform according to their authority and responsibilities completely. 11.  Specify that each director must attend the meeting at least half of the meetings arranged within each year. 12.  The Company’s Board of Directors must meet at least once every three months at the Head Office or Branch Office or neighboring provinces. 13.  Consider, set and amend the Company’s authorized directors to sign on behalf of the Company. 14.  Review the Board of Directors’ remuneration  package  to  be  within  the shareholders’ approved framework.

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Management Committee The Management Committee as

of December 31, 2007 consisted of the

following directors; 1.  Mrs. Metta  Utakapan Chief  Executive  Director 2.  Mrs. Supawadee  Komaradat Executive  Director 3.  Mr. Cheewapat  Nathalang Executive  Director 4.  Ms. Rarin  Utakapan Executive  Director

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Audit Committee Roles and Responsibilities 1.   Review  the  accuracy  and sufficiency of the Company’s Financial Reports. 2.  Review  the  appropriateness and  effectiveness  of  the  Company’s Internal  Control  and  Internal  Audit systems.

3.  Review and ensure that the Company follows Security Act and Stock Exchange Regulations or other related business law. 4.   Select  and  propose  the appointment of the Company’s Auditors and their rewards. 5.   Review  the  Company’s information disclosure in case of related transactions or transaction which may create conflict of interest to be precise and complete. 6.  Prepare  Audit  Committee’s Supervisory Report by revealing in the Company’s annual report. Such report must be signed and certified by the Chairman of Audit Committee. 7.   Perform  other  duties  as assigned by the Board and endorsed by the Audit Committee. 033

Management Committee Roles and Responsibilities 1.  Set  new  business  and investment strategy 2.  Approve  annual  budget 3.   Follow-up  the  Company’s business operation and ensure that it is conformed to the Company’s policies.

4.  Set risk management policies, procedures and control in every area. 5.   Set  good  internal  control policies, procedures and systems. 6. Report  Management Committee’s  overall  operation  and management  and  management  control to the Company’s Board. 7.  Set clear remuneration and benefits policy including directors and top executive’s compensation.

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Publishing Business Printing Business

Production

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Publishing Business

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From a tiny starting point in 1976, when the first “Baan Lae Suan” magazine was launched to the market in September, the publishing business has continuously grown along with the vast and diversified market growth. Together with accumu- lating experiences and aiming to be the content market leader, the Company has produced variety of media that are fully comprehensive with nationwide coverage to Thai readers.

Baan Lae Suan Magazine Thailand’s most popular magazine for home lovers The Company’s pioneering maga- zine is still under operation until now. It presents information and knowledge about home decorations, gardening and various things around homes as well as tips on home decoration trend and design trend covering lifestyles, hobbies or even arts and crafts. Today, “Baan Lae Suan” maga- Magazines zine’s monthly production is the highest With over 30 years of strong circulated home decoration magazine in determination since the launch of Baan Thailand. Lae Suan magazine, the Company has continued and had strong determined to Praew Magazine create high quality magazines. Following Inspirational magazine for modern Baan Lae Suan, “Praew” and “Praew women searching for knowledge Sudsapda” women magazines were It is a magazine for modern successfully launched and well accepted working women with comprehensive by the market. information and entertainment from During 1997 Thailand economic fashion, current news, social trends to crisis, the Company has shifted to publish various things that women should know more on health-focused magazines as well as health, beauty, novel, interview, including “Cheewajit” and “Health & documentary, art, movies, etc. Cuisine”. Later in 2001, the Company was licensed to publish the Thai version Sudsapda Magazine of “National Geographic” magazine. The Young, Smart & Sophisticated Company started published “room” in This is a bi - monthly magazine for 2003, “WE” in 2004. The Company was modern young generation with fashion & licensed to publish “Real Parenting” in 2005, trend in mind and ”Not just a guide, but “SHAPE” in 2006 and “In Style” in 2007. we are friends” pattern. Contents include Presently, the Company produces interviews, lifestyles, in-depth stories and 11 bi-monthly and monthly magazines interesting overseas entertainment news aiming to fulfill wider varieties of readers intended for readers to become high quality in the market. generation.

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Cheewajit Magazine Alternative health for both well and unwell This is the best selling bi - monthly health magazine in Thailand. It acts as an intermediary to provide health knowledge both in protect/rehabilitate and treatment of illness by following holistic medical principles. That is, by considering body, mind, social or environment via a modern- ized and lively magazine characteristics. It also has humorous aspects and is based on natures to excel readers’ body and mind health that can actually be used in daily lives. Health & Cuisine Magazine Inspiration for Healthy Living This is a magazine presenting foods for health with tips and recipes that have been tested as well as health information for modern women. The “Inspiration for Healthy Living” concept satisfies modern way of lives that focus on self care from nutrition all the way to health. These things can easily be done and are also another alternative for those who searching for good things in lives. National Geographic Magazine - Thai Edition Dicovering the world This is the magazine that will open up readers to natures and every lives in the world. It digs deep into various knowledge such as sciences, geographies, histories, natures, arts & cultures, traditions, arche- ology, ancient civilizations and various

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literature novels, short stories and poems. At present, the Company has expanded its editorial department to cover 14 imprints, producing books that totally fulfill all readers’ needs. These publishers produce several books covering various categories such as imaginary skills enhancements in children, health, foods, home & garden decorations, etc. By adhering to “quality” principles, the Company is able to fulfill reader needs of all gender and age. Praew Books It presents works of various writers including literatures, short stories, poems, novels, articles and entertainments. It hopes to stimulate thinking, writing and reading which are important foundations to create social conscious. Established in March 1992, it published the first book called “Leurd Nuea Prachatippatai Sadudee Weera- chon” (Fresh & Blood, Democracy, Praise for heroes). It later published the first true pocketbook called “Doo Nang, Doo Lakorn” (watch movies, watch drama) by Pran Pramool. Praew Children Books It focuses on producing quality books for kids to satisfy learning develop- ments and imaginary creations as well as activities to promote reading which considered as important educational foundations for children in the future. 039

creatures. Therefore, it is “a magazine as and real experiences from mothers to knowledge depository. The more you read, help readers confidently and effectively the more worthwhile to you and your family” raise their children to learn and to develop. It fulfills the needs of modern parents both informative and relationships room Magazine by adapting to the Thai’s families way Ideas for Practical Living This is a high quality magazine as much as possible. just like a designer that knows all decora- tions. It is superior to other magazines by SHAPE Magazine providing information matching lifestyles Smart, Active, Life, Style This is a monthly magazine for of new generations with beautiful pictures from different angles as well as presenting modern women with active lifestyle in what actually achievable. It simply opens order to promote fresh, enthusiastic and up each person’s decorative visions that energetic lifestyles. It covers every angle suit him/herself. room magazine thus and inspires woman to start exercise more helps please readers to enjoy decorating and to do more activities. their own spaces just like professionals. In Style Magazine Fashion, Beauty, Celebrity, Lifestyle WE Magazine The latest magazine in Amarin Love, Wedding and Living Together This is a magazine like a friend that group shows various lifestyles in fashion, makes your wedding day and marriage beauty, lifestyle and charity of celebrities life so impressive and perfectly beauti- or popular people. This magazine was ful. It presents cute wedding party ideas originated in the United States and has including suggestions in foster marriage become the most successful magazine relationships to last long and happily in currently. Because it has remarkable way accordance with “Love, Wedding & Living of presenting contents that are joyful and Together” concept. unique. This helps women to have nice attitudes towards every lifestyle. Real Parenting Magazine A real practical guide of modern parents Books for balanced lives By putting attention to and giving This is the first mother and child high importance to readers, the Company magazine of the Copany that is like a has established a quality books pub- real practical guide of modern parents lishing unit aiming to grow in tandem for balanced lives with 0 to 12 years old with magazine publishing unit. In 1992, children. It provides knowledge, advices “Praew Books” was established to publish

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Praew Juvenile Books It focuses on creating books for youths and readers who admire juvenile literatures by selecting globally well accepted books and translating them into Thai. In addition, the Company promotes creativities in Thai writers in the area of juvenile literatures. The first published literature was “Babe, The Sheep-Pig” Initial direction for the publish- ing division was “Creative fun reading”. Therefore, during the first 5 years, there were wide varieties of literatures targeting for fun reading and embedding creativities, information, knowledge and ethics as well as promoting new creativities in children. Subsequently, the division expanded customer base by selecting educational books for primary and secondary school kids. The publishing division changed its direction into “Learning with Creativity” ever since.

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Amarin Health Books This imprint focuses on know- ledge towards body and mind health so that readers can fully apply to their lives. It targets body and mind happiness among readers. Praew World Travel Books This imprint produces informative and entertaining travel guides for new generations. Readers should have attitudes towards travels such that they are lifestyles, adventures, ready to see

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new things and not simple or following the way other travelers do. Though not having high income, readers are willing to save money and willing to spend on traveling abroad. They would like to enhance their learning experiences and exchange ideas with new people in foreign lands. Amarin Dharma Books This imprint presents Dharma books that are easy to understand, maintain wonderful social morale, practical dharma suitable for everyone and able to easily apply to daily lives. All of these characteristics mainly support growing market popularity trend and help people to live happily in the society. Amarin Books It publishes informative books ensuring information is accurate, reliable and usable as reference as well as chang- ing the old boring perceptions. Books are suitable for those interested in sociologies, people, cultural arts, languages, histories, information, bibliographies as well as those interested and love non-fictions. Amarin Cuisine Books It publishes comprehensive foods related books by emphasizing on infor- mation and knowledge on various forms of foods, such as recipes, cooking tips, nutritional information as well as cultural depth and arts of cooing.

Highlighting in high quality and varieties of recipes, readers can practically use those recipes that have been thoroughly and carefully tested. Those certified and tested recipes carry circle symbol denoting the accuracy of recipes on the front cover of the books. Arun Books It publishes high quality novels by leading writers that are entertaining, emotionally happiness and embedding various thoughts to readers. Established in 1998, this publishing’s first publication was “Boung Hong” written by Kingchat who has trusted the Company to publish all of her novels. In addition, there are other honored writers such as Prapassorn Sevikul, Keerati Chana, Piyaporn Sakkasem Jutarat and Sirima Apijarin Amarin Comics Books It focuses on producing creative comic books or beautiful drawings along with informative, knowledge or various interesting facts. Books are suitable to people at all ages and genders as well as for promoting reading habits in Thai youths. Baan Lae Suan Books Publishes how - to books for home care and decoration, gardening decorative and flowering plants in colorful and tasteful presentation. They not only make an easy reading but also provide reference - worth

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by experienced trainers in each field. These trainings can be applied to skill develop- ments, professional advancements or as hobbies. Training courses not only create happiness or are enjoyable but also allow participants to spend their leisure time usefully and valuably. Amarin Tour The Ultimate Experience with Amarin Tour Amarin Tour organizes travel pro- grams to both domestic and international destinations to organizations and individuals under the concept to present numerous travel programs fulfilling any needs, for example historical sight - seeing tours, art and culture tours, health tours, gourmet tours and adventurous tours. Amarin Media Amarin Media produces television program “Club Sukaparp or Health Club” jointly by Health & Cuisine, Cheewajit and SHAPE magazines. The program is broad- casted every Thursday at 15.45 - 16.00 on Channel 7. The program presents health care knowledge with “Health Talk” with answering questions by experts, “1 minute with Guru” and “Club Recommend”.

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knowledge suitable for people passionate Amarin Publishing Services about home care and horticulture alike. One-stop publishing services We take orders from public Praew Magazine Books clients and organizations with compre- Brings to the reading public books hensive publishing services ranging of informative and entertaining natures from concepts layout, original manuscript with topics ranging from beauty to trendy production, photographing, unique layout fashion. Based on the popular contents design, printing, as well as coordination and feature stories of Preaw bi - monthly with Amarin Books Center for distribution magazine, the book also include real - should customers require. Therefore, life stories and thoughts by well - known we are a one-stop publishing shop personalities from different social circles. supporting expanded customers mainly to fulfill customers’ satisfaction. National Geographic Books Explores the boundless world of Information Center knowledge with National Geographic The center systematically compiles Society’s century - old repository of wisdom. and stores the Company’s intellectual National Geographic Books offers a selec- property and provides informational tion of captivating and inspirational services to employees who, from various non-fiction titles covering various topics editorial departments, are main users from adventure and exploration of art for this service at the initial stage. Later, culture to human civilization and lives the center has expanded its service to in the wild compellingly told by world - all employees and affiliated companies. renowned explorers and writers. At present, beyond current internal services, the center also provides How-To Books service in retrieving information and This is the latest imprint in the images for outsiders by charging service group focusing on developing minds fee at specified rates. and lifestyles of new generation. It also emphasizes in information that suitable New Media for every lifestyles of new generation such as quality of lives developments, work lives Amarin Training and morale boosting. Books are suitable Learning for Better Living for those who want new things and would Amarin Training provides several like to self develop for further success both training courses on both vocational and personal and work lives. entertainment through educational activities

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Printing Business “Amarin Garn Pim Limited Partnership” was established in 1976 and occupied only small space in shop houses located on Arun Amarin Road. Prior to “Amarin Printing and Publishing PLC” printing business, all of its personnel has built up their experience and expertise in every aspect of printing, printing quality and services. Until now, the reputation of “Amarin” is well accepted both locally and internationally as the country’s leading printing house.

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“We aim to produce quality publications that meet customer’s satisfaction.” The Company proudly takes part in creating high-quality publication which is not only to raise Thailand printing industry standard but also to serve educational and intelligence aspects in Thai society. With the intention and dedication of our highly caliber employees from experience artisan to those who graduated directly in Printing Science and Technology, training, a continuous research and develop- ment, giving high priority to investment in state-of-the-art technology machines and instruments, robust information technology and modern organizational management, these have caused the Company’s printing business to receive ISO 9002 Industry Standard for all of its production processes on March 12th, 1999 which is an excellent assurance for standard and efficiency of its production processes which will lead to high-quality work that meet every customer’s satisfaction.

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Readiness in Every Step of Production Process With its comprehensive printing services, Amarin Printing and Publishing PLC provide the full-range printing services. The customer’s printing matter will be closely taken care of and assured quality from experience personnel in every steps from computerized color and pictures editing >> typeset and proofread >> artwork and layout design >> photographing and film arranging >> plate making >> printing >> binding >> packaging and distribution. With the readiness in every aspect, the Company’s printing house is ready to provide flawless services in each step of the production process and with complete printing business through its quality examination and production standard control to meet customer’s needs and satisfaction.

colors proceeds with efficiency both in terms of time and quality. The Company’s printing press are well maintained and regularly taken care together with continuous humidity and temperature control system which helps increasing printing efficiency and helps creating outstanding printing quality. Post Printing High-quality printed matter will enter into post printing processes which are folding, binding, and page making both paperback and hardcover by using the most recent automatic machine. The Company’s product quality control and completeness examination in every step ensure fine and perfect work. Packaging and Distribution After every production process has been completed, there is final quality inspection on every product before it will be neatly packaged ready for safe and on-time distribution to customer both locally and internationally. Besides, the Company also offers distribution service and marketing for customer’s printed matters in every channel through its affiliates (Amarin Book Center Co., Ltd.).

Pre-press With the most up-to-date electronic equipments and computers that are not only to keep up and to fulfill meticulous and complicated skill design but also create complete new intuitiveness, creative and imagination. In addition, the Company also provides graphic design and digital color proof with trusted standard color matching and most importantly has continuous Database and Other Special Services production procedures in order to achieve The Company also offers complete high-quality printed matters. database service which helps the customer to gather information both contents and Printing Production Process illustrations in every format. This will ensure With modern printing technology that the customer can reprint, edit or add and computerized printing control, the value to their original works by producing Company’s printing process using different in modern electronics media such as CD types of printing press from 1 color to 5 and Internet.

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THE CONTINUOUS GROWTH TOWARDS FUTURE 51-ME-001_056-066 Eng_C.indd 56

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Review on Business and Competition Trend

Progress

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Review on Business and Competition Trend Business Trend on Publishing Division

Marketing and Advertising Trend

The advertising spending in 2007 was 83,817 million Baht, representing a 2.2% increase from previous year, whereas the main media are still relatively stable or slightly decrease. That is, the television media was 48,773 million Baht, represent- ing a drop of 0.51%. Radio media was 5,821 million Baht, a drop of 3.26%. Newspaper media was 14,286 million Baht, an increase of 1.86% in line with the overall growth of advertising industry. Magazine media was 5,416 million Baht, showing a drop of 4.16%. Lastly, outdoor advertising media decreased by 4.02%

Those plunged media were impacted by both economic and political fronts as well as the government measures affecting consumer confidence and market liquidity. As a result, marketing and advertising people as well as business proprietors had shifted their views and strategies in order to penetrate more directly to consumers. In addition, from the public relations perspective, customers still primarily chose television and newspaper media while used radio and magazine as secondary media. Should there be any advertising budget cut; radio and magazine are those to cut first. These two media believed to be less effective when comparing with television and newspaper despite that entrepreneurs had successfully created attractive advertising packages. We predict that the advertising industry should recover well in 2008 due to economic growth and political clarity, whereas the last general election was one of the catalysts for higher advertising spending. Media to keep an eye on are: 1. Buzz TV uses modern trans- mission system to transmit advertising contents onto TV monitors placed inside air-conditioned buses. 2. Shopping Mall Advertising Media utilizes modern technology such as 3D monitor, End Cap TV (shop-shelved monitors).

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Overall condition of printing industry Year 2007 was the auspicious year to celebrate His Majesty King Bhumibol’s 80 th Birthday Anniversary. There were numbers of books relating to such celebration produced during the year such as, Biography of His Majesty, His Majesty’s Activities. It was also the year of drafting the new constitution intended for national public opinion that lead to the general election at the end of 2007. As a result, there were numbers of new parties formed, numbers of candidate introductions as well as parties’ policies announcements. These events had called for over 10 billion Baht spending in printing media needs such as leaflets and posters. In addition, there were also strong printing consumption trend after the Thai Printing Association and the Publishers and Booksellers Association of Thailand had jointly promoted people to read more. They had also helped increase packaging sales by promoting modern designs that add value to the products. Another indicator showing high growth in printing industry was the 1.5 million admittances during the 12 th National Book Fair representing a 100,000 admittances increase from 2006. For 2008, we started the year with

an announcement from the Bureau of the Royal House Hold with regards to the death of Her Royal Highness Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra. For commemoration, both public and private sectors have continued to publish various books in various angles on Her Majesty’s royal chronicles. For the overall pulp industry, it continues to grow at around 5% similar to last year on the back of continuing pulp demand. In any case, the pulp industry may face with economic risk factors and high volatility in oil price. This will increase the production cost and will adversely impact the competitiveness of several entre preneurs.

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and influential. They have quite high advertising and promotional impacts when comparing with money invested. With proper promotional campaign, magazines should help boost printing industry growth and also help quality developments both in printers and Magazine Market Trend In 2007, economic condition was bookstores. the major factor impacting every magazine at which they can only try to survive. New Book Market Trend In a 2007 survey from The Publish- magazines were hardly launched while ers and Booksellers Association of several ones had no choice but to close down. Magazine owners must adjust them- Thailand, a Thai read approximately selves to withstand the digital infor- 2 books with an average cost of 260 Baht mation storm. In Bangkok, 18% of readers per book annually. While the reading now read magazine online, representing a trend among adults was stable, such 2% increase from 2006. One of the factors trend among youths aged between causing people to increasingly read 12-18 years had increased. The litera- magazine online is that there are over ture category accounted for the largest 100 operators now put magazine content market share. The Association together online on websites. As a result, those with over 32 networks of Book for contents became easily available online Children, Youth and Family had jointly and are cheaper than buying printed tendered an opened letter and request the Government to announce “Book Reading magazines. It is estimated that the magazine as a National Agenda”. The attempt hoped market will grow by around 10% in 2008 to create a healthy and enduring society from around 10 new magazines launches, through reading. While the Education both locals and internationals. Hence, Ministry had responded to such petition every publisher must continue to adjust by launching campaign for Thais to read itself more and more. Anyway, magazines about 12 lines per day as a way to instill are still considered as modern media reading habit at all ages. In 2008, the competition in book whereas they can be designed to reach specific target readrs. They are also market is still continually intense. Though charming, have touchable characteristics Thailand economic, political and social 3. Internet Media has been very familiar to Thai people for a long time. Both public and private sectors have shown their interests in using this media to provide information to consumers.

conditions are still volatile, it is estimated that the market can grow at the rate of 10% with around 20 billion Baht in value. This definitely impacts related businesses such as printers, paper producers and exporters. There are lots of foreigners interested to read Thai books because it is the way to better understand Thailand. Those popular books should include “How-To”, those in- the-trend books such as social, economics, political, entertainments and historical books especially for those who desire to know about how the nation, country or leaders evolve through these years.

Market Trend and Publishing Business Strategies

With political instability and decelerated economy, various markets show sign of slowdown and more severe competition. Amarin thus focuses on progressive management style in order to increase competitive edge, especially in the area of information for understanding industry and market movement, survey on readers needs, continuous staff trainings. All of which gear toward stronger and higher capability to propel enduring business growth.

Magazines

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order to put liveliness to magazines. This will emphasize our leading position in magazine market, preserve our readers’ base as well as push other magazines forward for growth which helps us to reach number 1 position in the market. Furthermore, Amarin had formed a unit to analyze and to follow magazine market movement and trend on a conti- nuous basis. In addition, this unit will conduct researches with magazine readers so that we can improve contents and formats that will better serve our customer preferences. From 2007 annual survey, overall magazine market had growth potential but was not high enough to compensate for the market shrink in 2006. We can categorize our magazines into the following groups: 1. Woman and Fashion Magazines grew at approximately 3.32% resulting from the launch of In Style magazine since May 2007 and was well received since inception. Praew magazine has continued to lead the market in Thai women magazine and has obtained highest advertisement amount in the market. In Style magazine ranked 5th in the market. 2. Adolescent Leisure Magazines grew around 25.35% whereas “Sudsapda” magazine has continued to lead the market in this category. 3. Home, Garden and Decoration Magazines showed a growth of 7.81%. The Amarin affiliated magazines have continued to lead the market in this group. Baan Lae Suan magazine has had the highest sale and advertising value while

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room magazine ranked 2 nd in term of market share. 4. Health Magazines grew at 8.19% and continuously expanded. Several magazines in the market had changed their tactics and contents to be more modern and can create health awareness trend to many readers. Cheewajit magazine is the most popular magazine in this category. 5. Food and Well-being Magazines grew at 24.16% which was the fastest growing comparing with all other magazine groups. Because it can directly address to consumers especially those who turn to cook more health food. Health & Cuisine Magazine ranked 1st in term of market share in the B+ reader group upward. 6. Information and Documentary Magazines grew at 3.83% whereas the Thai version of National Geographic magazine enjoyed the number 1 market share. 7. Love & Affection and Marriage Magazines enjoyed relatively high growth at around 13.07%. WE magazine has had the number 1 market position. 8. Mother & Child Magazines declined by around 25.67% following the decrease in birth rate and the delay of having child. While Real Parenting magazine had a slight growth, it actually moved up to the top 3 position in this market segment. 9. Health & Beauty Magazines had a slight growth of 2% where SHAPE magazine still occupied number 1 market position.

Books

Amarin emphasizes on creating Low Cost Happiness scheme under the policy intending to publish a variety of books that are informative and enjoyable to readers. This policy also corresponds to the Company main policy of “We work for the happiness and prosperity of our society”. With more than 30 years of experience, the Company earns competitive advantage by producing high-quality publications to response to the needs of all age and gender groups. The attempt will create more readers to the Thai society in the future. In 2008, the Company outlines its progressive marketing strategies in order to stimulate the target groups for the interest and to build reading habit by continuing offering, selecting and printing quality books. This is to emphasize its principles in creating younger readers together with creating higher moral society. In this regards, the Company has renamed and launched new publishers as follows; Amarin Dharma Books The Company focuses on offering series of Dharma books which are easy to under- stand and sustain good moral to the society. Besides, it intends to produce practical Dharma book for everyone to easily apply to their daily lives. This will continuously help sustaining the increasing market preferences and maintaining happiness to members of society. Books in the category are written by well-known writers such as Vor Vachiramethee, Dr. Som Sujira, Dr. Sanong Vora-urai, Khunying Chamnongsri

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has become one of the Company strengths that create the continuous growth. As a result, the Company plans to organize more magazine related fairs through high quality teams who analyze marketing opportunity and environment including target group’s behavior and needs. The major trade fairs in 2007 were the following; Baan Lae Suan Fair Baan Lae Suan and room magazines have jointly and meticulously arranged the annual trade fair for 8 years running. This is the most grandeur festival for home and garden lovers in Thailand. The fair was different, more prominent than others and was organized under the concept of “Harmony of Different Tones”. It was organized at Challenger Hall, Impact Muang Thong Thani between 30 October - 4 November 2007. Amarin Book Fair It is a fair for those book lovers and organized annually. In 2007, it was the 6th year fair and was more special than previous ones. Amarin had cooperated with more than 20 al- liance publishers including Jam Sai, EQ Plus, Wong Klom (Circle), Ton Mai (Tree), Penpocket, Open Books, Tib Thai Inter Books, People Media, TV Burapa, Sara- kadee, DMG, IDC, Sukaparb Jai, Export Net, Physics Center, Nation Books, BLISS, Plan for Kids, Nan Mee and Success Media. The fair also included various activities such as new books launches, talks and workshops from writers, translators and variety of celebrities under the concept of “Seek for the Soul”. The fair was organized at Grand Ballroom, Queen Sirikit National

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Praew Travel the World Books Harnjanelak. (previous known as Sudsapda Book) Amarin   Books   This imprint produces accurate and reliable informa- This imprint publishes informative and tive books that can be used as references. entertaining travel guides for the new This will change the perception of boring generation. They are suitable for those educational book image. But they will be who think that travel is another lifestyle, suitable for those who are interested adventure and ready to meet new things. in educational, social science, people, Even though, not having high income art and culture, language, history, they are willing to save some money biography as well as those interested for travel abroad to enhance their experiences, learning, exchange ideas in non fictions. Amarin How-To Books This with those in other countries. Arun Books The Company pro- new imprint produces life and mind duces high-quality novel by leading improving handbooks for new generation by emphasizing on the contents that can authors in order to entertain and add response to new generation lifestyle in some thought-provoking to readers. every angle; for example, life and career Currently, Arun Books has around 70 development and morale enhancement. novels and short stories. In 2008, the This is suitable for those who are ready to Company aims to become number 2 experience new things, are interested in position in Thai novel market and self improvement for success in personal to increase its romantic novel publishing for teenager group. lives and careers. The Company is determined to Amarin Cuisine Books (previously known as Health & Cuisine Book) Food produce high-quality books by emphasi- is the beginning of good health care. The zing the Company’s philosophy of creating Company is determined to produce and Prosperity society through continuing offers high-quality health recipes through selecting and publishing high-quality selection of menu especially Thai food. This books. In 2008, the Company has is in response to reader needs who want publishing targets of around 400 covers. actually-usable recipes. Each recipe has been carefully tasted with the circle sign Marketing Activities and Trade showing “Tried & Tested” to assure the Fair With the flourishing of magazine correctness on the cover. With attention businesses, the Company expands the in every detail, this has brought interests to several oversea publishers who have business into content providing through contacted the Company for copyrights. trade fairs. This brings magazines into life by quality and experience trade fair orga- nizers for over 8 years such that the fair

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Convention Center between 20 - 24 June 2007. Health,  Cuisine & Beauty Festival  In  2007, Health & Cuisine, Cheewajit and SHAPE magazines had jointly organized the annual health, foods and beauty fair for 3 years. The fair was highly accepted by both entrepreneurs and visitors. Within the fair, there were healthy homemade foodshops, one-day simple macrobiotic lessons and SHAPE Make Over activities following the concept of “The best fun shopping for health food and beauty in Thailand”. The fair was organized at Plenary Hall and Meeting room 1 & 2, Queen Sirikit National Convention Center between 1 - 5 August 2007.

New Business Development Works

produces all comprehensive printing jobs to various individuals and organizations. Should customers need, it is ready to provide fully integrated services from unique printing designs, typescripts, illustrating photo- graphs, translations, printings, deliveries as well as coordinating distributions with Amarin Book Center. Highly recognized works include “Sang Nueng Kue Rung Ngarm (Single light is appealing rainbow)”, The book commemorating the 84 birthday of Her Royal Highness Princess Galyani Vadhana Krom Luang Naradhiwas Rajana- garindra and the “In my beloved Country” (Thailand – the only beloved land in my heart), the natural photo collections by Dr. Chaichon Lowcharoenkul, etc. Therefore, Amarin Publishing Services is an integrated services department that can accommodate consumer growth by focusing on maximizing customer satisfaction. Marketing, Public Relations and Marketing Activities The Marketing and Public Relations Division is responsible for marketing plans and marketing activities including continually survey and follow all market movements in order to build competitive capabilities. The division comprises of 2 following units:

Printing Unit

Printing unit focuses on progres- sive marketing programs in order to excel in customer services and customer impressions, which will lead to Corporate Image branding. Account Executives are responsible for building strong

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With continuing success in printed business, the Company has embarked into new business ventures that allow readers to connect and to jointly experience content delivery together with the Company. New business ventures are: Amarin Tour This is a supporting to the core business of the Company. Amarin Tour provides both in-bound and out-bound travels using highly skilled professional guides to general public and several organizations. It operates under the concept of “The Service you can trust” by providing various tour programs and patterns that satisfy every interests. For example, historic tours, art & cultural tours, health & gourmet tours, adventure tours,

etc. The Company plans to grow this part of business by 50% in 2008. Amarin Training The Company provides seminars and trainings under the concept of “Learning for Better Living” with the objective of helping people to relax through providing information on various art and craft skills in form of professions, activities, knowledge. Highly skilled and experienced instructors will help developing skills and promoting occupations or just hobbies. In addition, this should enable people to enjoy and to please and to gain benefit and value out of spare time. The business has strong growth and is planned to grow at 30% in 2008. Amarin Media Television Produc- tion Business Health & Cuisine, Cheewajit and SHAPE magazines have jointly produced the “Healthy Club” television program which airs on TV channel 7 on every Thursday from 15:45 - 16:00. The program provides information on health care with “Health Talk” as well as a “1 Minute with Guru” Q&A section from experts and “Club Recommend”. In 2008, the Company plans plan to stress on leading position in content provider and to extend the business by presenting 3 new TV programs. Meanwhile, the Company has also simultaneously considered economic situations and advertising spending from other businesses in publishing division. The Company believes that the growth rate should not be less than 10%. Amarin  Publishing  Services Renamed from “Commercial Publishing”, at present, Amarin Publishing Services

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relationships with clients. This includes customer contacts, customer visits, printing consultants (from the beginning to the completion), printing qualities and customer services. As a result, the Company has received trusts from various clients. Therefore, in addition to existing client referrals, some new clients have directly contacted us as they have heard our name or have seen our previous works.

Publishing Unit

Publishing unit handles integrated marketing strategies combining with various marketing activities. The unit aims to create branding power which will push forward to new businesses as well as emphasize on content leader. All of these goals can be achieved through sale promotion activities, advertisements, public relations as well as various activities. This unit comprises of 2 departments as follow: 1. Magazine Marketing and Public Relations Department  This depart- ment is responsible for all magazine detail works focusing on image building through various marketing and public relation activities. It also responsible promoting interests to customers so that they can pursue on a continuous basis. Moreover, the Company sets its goal to promoting sales and preserving customer base through sales promotions which will influence readers to subscribe to magazines. The department also focuses on building strong relationships between the magazines and

targeted stakeholders such as customers, advertisers, subscribers, magazines and general readers. The department has successfully carried out various activities that impress and satisfy our target stake- holders as well. 2. Book Marketing and Public Relations Department This department is responsible for following up and surveying any marketing gap. This will help develop or launch new books that serve readers’ needs well and in time with market trends. It is also responsible for advertising new books to creating popularities and planning for sale promoting activities through various channels such as bookstores, direct mails, internet and subscribers. In addition, the department conducts various marketing activities to promote and produce new writers as well as to increase reader base. It may launch various marketing programs in conjunction with educational institutions or writing competitions with some prizes to writers with objectives to praise their works and to create high quality Thai Books.

Source of Company Income Classified by Types of Products or Services are as Follow:

1. Printing Services: Account Executives handle customer contacts and integrated printing services. It is responsible for clients’ jobs from the beginning to the end with high quality, which totally consistent with the company’s objectives. The unit provides closely and friendly

clients’ consultations so that it can build customer impression and trust in high quality work. Therefore, in addition to existing client referrals, some new clients have directly contacted us as they have heard our name or have seen our previous works. 2. Magazines: can be classified into 2 types as follow: 2.1 Advertising Sales: Advertising sales department sells advertising spots as well as various sales promotion activities to advertising agencies and to direct customers. It also facilitates In House Production and other activities to required customers as well. 2.2 Magazines Sales: The Company sells magazines through Amarin Book Center Co., Ltd., who distributes magazines to 37 agents or delivery centers in Bangkok and 193 in other provinces. Sales are made through various chain retailers such as Nai Indra, B2S, Book Smile, Dok Ya and Prae Pittaya as well as through direct delivery to subscribers instead of mail system so that magazines can read our subscribers as fast as possible. 3. Books Sales: Books are distri- buted through Amarin Book Center Co., Ltd., who distributes to bookstores countrywide to the following distribution channels: General Bookstores Use the Following Methods: - Bangkok bookstores – using Standing and Reorder method - Other provinces bookstores – using Point of Sale method - Amarin Network system: This is a 065

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“http://www.naiin.com” www.naiin.com, customers can easily search a book by category or publisher using search engine. E-Commerce system can offer to readers either through B2B or B2C as well. 4. Magazines & Books Production Services from Amarin Publishing Services: Amarin Publishing Services handles customer contacts and integrated printing services by experts in professional printing. It creates every type of prints from book & pattern designs, contents and finished books delivery to clients. In addition, it also provides close consulting services in order to create high quality products and also fulfill direct customer needs. 5. Business Development Department 5.1 Amarin Tour provides travels using professional guides to general public and various organizations. It has a sales team contacting and presenting service options as well as providing valuable consultation for travel arrange- ments to customers. 5.2 Amarin Training provides skill trainings on arts and crafts to general public and organizations by providing instructors and training arrangements as well as consulting services. It also provides advices to clients so that seminars are effective and satisfy customer needs. 5.3 Amarin Television produces “Healthy Club” program while TV advertising department handles advertising sales not only in form of in-program special advertising scoops but also various sponsor contacts. It properly allocates airing schedule in

accordance with customer needs. It also provides consulting services in form of products and services displays that effectively reach target audiences. 6. Fairs 6.1 The annual Baan Lae Suan Fair has been organized for 8 years. The Company has invested in organizing marketing activities and public relations in inviting people to join. At the same time, the Company also sells exhibit areas by utilizing the current sales capability from Magazine Advertising Sales Department. 6.2 Amarin Book Fair displays all businesses under Amarin Group and also declares the “Integrated Printing Business Leader” position, including publishing, printing, distribution, bookstores as well as leading magazines producer in the country. The fair is considered as a mega annual festival that promoting new books to the market as well as giving opportunities for readers to purchase quality books at reasonable prices. 6.3 The annual Health Cuisine & Beauty Festival was first organized in 2005 with the objective to promote knowledge on health, beauty and foods through numerous activities. The fair tries to uplift quality of Thai lives. The Company has invested in publicity and has sold exhibition areas to various organizations through professional advertising sales team.

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joint network between dealers and general bookstores. The Company has participated in developing stores and selecting suit- able books to customers needs according to the area of the stores. This system has direct benefits to readers, bookstores and publishers. Currently, there are around 92 branches joining the network. - Nai Indra Bookstores: These are retailer shops under the Company’s affiliates. The stores operate under “Book Center and Creative Media” slogan. At present, there are 116 branches and planned to expand another 30 branches in 2008. - Direct Sales system: Selling agents will offer and advise books under Company’s distribution to various academic institutes, government agencies and libra- ries by selecting books that are suitable and create value to Thai society and education. These books are intended for escalating studies or extra-curricular readings which will enhance intellectuals and skills to youths or other people in general. - Direct Mail system: With sub- scription management capability, the Company has built a comprehensive customer database and has promoted marketing activities. Hence, customers are familiar with and have received new books introduction through direct mail system. - Mobile Sales system: Mobile sales units can participate in various exhibi- tions and expos such as National book fair, book exhibitions and various expo, etc. - E-Commerce system: Through

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Risk Factors and Risk Management 1. Only magazine with a clear positioning can survive market competition ; those slow to adapt and not accepted by the market tend to withdraw from the market faster than usual, particularly in a sluggish economy and unfavorable political environment, as the magazine business has to sustain two major elements that include sales volumes and advertising. Thus, every magazine adapts to create a competitive niche in terms of content the better responds to the requirements of the targets, hence the need to differentiate itself from other com- petitors and the very factor that contributes to the fierce competition in the market. 2. Advertising revenues through magazines: this involves a range of pricing strategies to maintain one’s advertising market share which is likely to lead to price war. In the majority, well-received and popular magazines try to avoid this strategy to main- tain standards and pricing level. 3. The 0% tax break for imports in the printing industry widens the competition gap further, especially imported foreign pub- lications in the country which have become

The past is the precious memory.

cheaper. On the contrary, the gap in translated publication for the local market narrows as a result. 4. The country’s unstable condition dampens consumer sentiment as people tent to spend more time at home and run errands only when required. The fact that they also avoid crowded venues affects the business of the trade fairs where products and specialized services are center. 5. Financial Risk Factors arising from the volatility of interest and exchange markets as well as the impact involving the failure of contract compliance by con- tractual parties are mitigated through proper financial instruments to protect the Company from potential risks. However, it has no policy to issue or hold its own financial instruments for profit or commercial speculation. Payment risk involving credit lines and terms for customers/debtors is another risk factor to which the Company is exposed. Proper debt management policy and appropriate pro- visions for doubtful debts are believed to effectively keep the risk of debt defaults at bay.

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Risk Factors and Risk Management 1. Only magazine with a clear positioning can survive market competition ; those slow to adapt and not accepted by the market tend to withdraw from the market faster than usual, particularly in a sluggish economy and unfavorable political environment, as the magazine business has to sustain two major elements that include sales volumes and advertising. Thus, every magazine adapts to create a competitive niche in terms of content the better responds to the requirements of the targets, hence the need to differentiate itself from other com- petitors and the very factor that contributes to the fierce competition in the market. 2. Advertising revenues through magazines: this involves a range of pricing strategies to maintain one’s advertising market share which is likely to lead to price war. In the majority, well-received and popular magazines try to avoid this strategy to main- tain standards and pricing level. 3. The 0% tax break for imports in the printing industry widens the competition gap further, especially imported foreign pub- lications in the country which have become

The past is the precious memory.

cheaper. On the contrary, the gap in translated publication for the local market narrows as a result. 4. The country’s unstable condition dampens consumer sentiment as people tent to spend more time at home and run errands only when required. The fact that they also avoid crowded venues affects the business of the trade fairs where products and specialized services are center. 5. Financial Risk Factors arising from the volatility of interest and exchange markets as well as the impact involving the failure of contract compliance by con- tractual parties are mitigated through proper financial instruments to protect the Company from potential risks. However, it has no policy to issue or hold its own financial instruments for profit or commercial speculation. Payment risk involving credit lines and terms for customers/debtors is another risk factor to which the Company is exposed. Proper debt management policy and appropriate pro- visions for doubtful debts are believed to effectively keep the risk of debt defaults at bay.

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Development Path Leading to the 4th Decade 2519 - 2550

10

20

2nd Decade 1986 - 1996

1 Decade 1976 - 1986 st

1976 - In 1976, Mr. Chukiat Utakapan founded Baan Lae Suan Magazine Limited Partnership to publish “Baan Lae Suan” (House and Garden) magazine. Its first office was located on the rented space in MCC Building. - In September 1976, the first issue of Baan Lae Suan magazine was launched. 1977 - In 1977, Amarin Printing Limited Partnership was established as a small printing house to embark a printing business. The company purchased a shop house in Arun Amarin Bridge District to accom- modate their printing house and Baan Lae Suan magazine. 1979 - On September 5th, 1979, the first issue of Praew magazine was launched. 1983 - On February 16th, 1983, the first issue of Praew Sudsapda magazine was launched (later renamed to “Sudsapda” in 2001)

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1986 - In 1986, Baan Lae Suan Magazine Limited Partnership has become Baan Lae Suan and Praew Co., Ltd. Concurrently, Jadjamnai Sing Pim Co., Ltd was established to handle the distribution of all 3 magazines.

1987 1993 - In 1987, Amarin Printing Limited Partnership was transformed into - In 1993, the company became a public company and was since Amarin Printing Group Co., Ltd. known as Amarin Printing and Publishing PLC. - The company was entrusted to publish and distribute the King’s 1990 first translated literary work, “Nai Indra Phu Pit Thong Lang Phra”. th - In 1990, the company received Asian Award, the 4 Tokyo Creation At the same time, Amarin Book Center Co., Ltd was established to Awards organized by Tokyo Fashion Association of Japan for its handle publication distribution. cultural reinforcement business offering to Thais. The company has continually given supports to art and culture, history and has been 1994 Thailand’s high technological printing house. - On May 14th, 1994, HRH Princess Maha Chakri Sirindhorn visited the - Baan Lae Suan and Praew Co., Ltd. and Jadjamnai Sing Pim printing house follow the invitation of Mr. Chukiat Utakapan, the Co., Ltd. were handed over all businesses to be under the operation company’s Chairman and Chief Executive Officer which considered of Amarin Printing Group Co., Ltd. as the highest auspicious for the company. The company, therefore, assumed May 14th every year as the printing house anniversary ever 1991 since. - In 1991, the printing house was relocated from Arun Amarin to the - In June, 1994, Amarin Book Center Co., Ltd. started the retail book new premises in Soi Wat Chaiyaphrukmala, Taling Chan and was business by opening the first “Naiin” Bookstore in Tha Prachan area. the highly modern and completed printing house. 1995 1992 - The King’s second translated literary work, “Tito”, was published and - In 1992, the company was listed in the Stock Exchange of Thailand distributed. and started the book publishing business through “Praew Book”. With continually developed, the company now consists of 14 imprints.

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Development Path Leading to the 4th Decade 2519 - 2550

10

20

2nd Decade 1986 - 1996

1 Decade 1976 - 1986 st

1976 - In 1976, Mr. Chukiat Utakapan founded Baan Lae Suan Magazine Limited Partnership to publish “Baan Lae Suan” (House and Garden) magazine. Its first office was located on the rented space in MCC Building. - In September 1976, the first issue of Baan Lae Suan magazine was launched. 1977 - In 1977, Amarin Printing Limited Partnership was established as a small printing house to embark a printing business. The company purchased a shop house in Arun Amarin Bridge District to accom- modate their printing house and Baan Lae Suan magazine. 1979 - On September 5th, 1979, the first issue of Praew magazine was launched. 1983 - On February 16th, 1983, the first issue of Praew Sudsapda magazine was launched (later renamed to “Sudsapda” in 2001)

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1986 - In 1986, Baan Lae Suan Magazine Limited Partnership has become Baan Lae Suan and Praew Co., Ltd. Concurrently, Jadjamnai Sing Pim Co., Ltd was established to handle the distribution of all 3 magazines.

1987 1993 - In 1987, Amarin Printing Limited Partnership was transformed into - In 1993, the company became a public company and was since Amarin Printing Group Co., Ltd. known as Amarin Printing and Publishing PLC. - The company was entrusted to publish and distribute the King’s 1990 first translated literary work, “Nai Indra Phu Pit Thong Lang Phra”. th - In 1990, the company received Asian Award, the 4 Tokyo Creation At the same time, Amarin Book Center Co., Ltd was established to Awards organized by Tokyo Fashion Association of Japan for its handle publication distribution. cultural reinforcement business offering to Thais. The company has continually given supports to art and culture, history and has been 1994 Thailand’s high technological printing house. - On May 14th, 1994, HRH Princess Maha Chakri Sirindhorn visited the - Baan Lae Suan and Praew Co., Ltd. and Jadjamnai Sing Pim printing house follow the invitation of Mr. Chukiat Utakapan, the Co., Ltd. were handed over all businesses to be under the operation company’s Chairman and Chief Executive Officer which considered of Amarin Printing Group Co., Ltd. as the highest auspicious for the company. The company, therefore, assumed May 14th every year as the printing house anniversary ever 1991 since. - In 1991, the printing house was relocated from Arun Amarin to the - In June, 1994, Amarin Book Center Co., Ltd. started the retail book new premises in Soi Wat Chaiyaphrukmala, Taling Chan and was business by opening the first “Naiin” Bookstore in Tha Prachan area. the highly modern and completed printing house. 1995 1992 - The King’s second translated literary work, “Tito”, was published and - In 1992, the company was listed in the Stock Exchange of Thailand distributed. and started the book publishing business through “Praew Book”. With continually developed, the company now consists of 14 imprints.

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40 30 To the 4th Decade 2006 - 2007

3rd Decade 1996 - 2006 1996 - The King’s precious literary work, “Mahajanaka”, was published and distributed as hardcover with the commemorative Mahajanaka medallion sets. - The company’s training business (Amarin Training) and travel business (Amarin Tour) were commenced. These businesses have continued to enjoy growth and expansion until now.

2000 - The company was commissioned to publish and distribute the full-color cartoon version of the King’s precious literary work “Mahajanaka”. - The first “Baan Lae Suan Fair” was organized to celebrate “Baan Lae Suan” magazine’s 25th anniversary and has been organized annually since then.

2001 1997 - In February, the first issue of “Health & Cuisine” magazine was - The King’s precious literary work “Mahajanaka”, small-sized paper- launched. back set, was published and distributed. - In August, the first issue of “National Geographic Thai Edition” magazine was launched. HRH Princess Maha Chakri Sirindhorn 1998 kindly presided over the launch ceremony on July 25th, 2001. - The King’s precious literary work “Mahajanaka”, small-sized hard- - The first Amarin Book Fair was held, and has been organized cover and paperback with the commemorative Mahajanaka medallion annually. sets, were published and distributed. - On October 16th, 1998, the first issue of “Cheewajit” magazine was 2002 launched. - The full-color hardcover of the King’s latest literary work, the story of “Thongdaeng”, was published and distributed. 1999 - The cartoon version of the King’s precious literary work “Mahajanaka” 2003 was published. - In March, the first issue of “room” magazine was launched.

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2004 - The full-color cartoon version of the King’s literary work, “Thongdaeng”, was published and distributed. - In March, the television program “16/15 Time for Health” was broadcasted on Channel 7 which was later renamed to “Health Club” and has continued to be on air until now. - In April, the publishing house has relocated to the new Head Office on 11 rai plot next to the printing house under the name of “Amarin Corporate Park”. - In May, the first issue of “WE” magazine was launched. - In July, the company started its full commercial publishing business with the introduction of its Commercial Publishing Division which was subsequently renamed to “Amarin Publishing Services”. This is another part of Amarin which generated quality printed matter meeting customer’s requirements. - On November 9th, 2004, HRH Princess Maha Chakri Sirindhorn presided over the official inauguration of “Amarin Corporate Park”. This also regards as the company’s highest privileged event.

- The first “Mind, Body and Beauty Fair” (later renamed to “Health, Cuisine & Beauty Fair”) was organized and has become an annual event since then. 2006 - In February, the “Baan Lae Suan” television program was broadcasted on Modern Nine TV or Channel 9. - In April, the initial issue of “SHAPE” magazine was put on sale.

2007 - On May 15th, “In Style” magazine was auspiciously introduced as the latest fashion magazine affiliated to Amarin. The launch ceremony was honored by Princess Ubol Ratana to chair the event. - In July, the television program “Smart Living” was on air on Modern Nine TV.

2005 - In March, the first issue of “Real Parenting” magazine was put to the market.

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40 30 To the 4th Decade 2006 - 2007

3rd Decade 1996 - 2006 1996 - The King’s precious literary work, “Mahajanaka”, was published and distributed as hardcover with the commemorative Mahajanaka medallion sets. - The company’s training business (Amarin Training) and travel business (Amarin Tour) were commenced. These businesses have continued to enjoy growth and expansion until now.

2000 - The company was commissioned to publish and distribute the full-color cartoon version of the King’s precious literary work “Mahajanaka”. - The first “Baan Lae Suan Fair” was organized to celebrate “Baan Lae Suan” magazine’s 25th anniversary and has been organized annually since then.

2001 1997 - In February, the first issue of “Health & Cuisine” magazine was - The King’s precious literary work “Mahajanaka”, small-sized paper- launched. back set, was published and distributed. - In August, the first issue of “National Geographic Thai Edition” magazine was launched. HRH Princess Maha Chakri Sirindhorn 1998 kindly presided over the launch ceremony on July 25th, 2001. - The King’s precious literary work “Mahajanaka”, small-sized hard- - The first Amarin Book Fair was held, and has been organized cover and paperback with the commemorative Mahajanaka medallion annually. sets, were published and distributed. - On October 16th, 1998, the first issue of “Cheewajit” magazine was 2002 launched. - The full-color hardcover of the King’s latest literary work, the story of “Thongdaeng”, was published and distributed. 1999 - The cartoon version of the King’s precious literary work “Mahajanaka” 2003 was published. - In March, the first issue of “room” magazine was launched.

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2004 - The full-color cartoon version of the King’s literary work, “Thongdaeng”, was published and distributed. - In March, the television program “16/15 Time for Health” was broadcasted on Channel 7 which was later renamed to “Health Club” and has continued to be on air until now. - In April, the publishing house has relocated to the new Head Office on 11 rai plot next to the printing house under the name of “Amarin Corporate Park”. - In May, the first issue of “WE” magazine was launched. - In July, the company started its full commercial publishing business with the introduction of its Commercial Publishing Division which was subsequently renamed to “Amarin Publishing Services”. This is another part of Amarin which generated quality printed matter meeting customer’s requirements. - On November 9th, 2004, HRH Princess Maha Chakri Sirindhorn presided over the official inauguration of “Amarin Corporate Park”. This also regards as the company’s highest privileged event.

- The first “Mind, Body and Beauty Fair” (later renamed to “Health, Cuisine & Beauty Fair”) was organized and has become an annual event since then. 2006 - In February, the “Baan Lae Suan” television program was broadcasted on Modern Nine TV or Channel 9. - In April, the initial issue of “SHAPE” magazine was put on sale.

2007 - On May 15th, “In Style” magazine was auspiciously introduced as the latest fashion magazine affiliated to Amarin. The launch ceremony was honored by Princess Ubol Ratana to chair the event. - In July, the television program “Smart Living” was on air on Modern Nine TV.

2005 - In March, the first issue of “Real Parenting” magazine was put to the market.

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Learn and step forward to the future. 51-ME-001_PANPUB 067-068 Eng_C.i4 4

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THE DIGNITY OF SHARING SUCCESS B

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Learn and step forward to the future. 51-ME-001_PANPUB 067-068 Eng_C.i4 4

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THE DIGNITY OF SHARING SUCCESS B

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Pride

Royal Literary Works Rewards Fairs & Launch Party Charity

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With long printing and publishing experiences together with trusts from readers and society, Amarin Printing and Publishing PLC proudly has become truly professional in the printed matter industry. At the same time, the Company also focuses on providing information, entertainment and good things in return to the society by arranging literature contests, fairs and charity events in accordance with the Company’s philosophy that “We work for the happiness and prosperity of our society”.

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These prides are moral supporting the Company to continue pushing forward better works. Because Amarin’s pleasure is to share these prides to everyone in the organization.

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Royal Literary Works The Royal Family Publications

It is the greatest honor to the King’s divine grace who graciously entrusts the Company to publish and distribute several of the King’s and other members of the Royal Family’s literary works and publications along these years.

His Majesty the King’s Literary Works

In 1993, under his majesty royal kindness, His Majesty the King allowed the Company to publish and distribute his first translated literary works “Nai

Indra Phu Pit Thong Lang Phra”. And in the following year, His Majesty the King gave his second translated literary works “Tito” to the Company. His Majesty the King’s literary works “The Story of Mahajanaka” was a truly valuable work with moral concept and was the greatest auspicious to Thai people. The company had published several times both in large and small size, both in hardcover and  paperback. Particularly  for  the cartoon version, it was distributed at an economical price in order for people at all ages and

genders to afford throughout. In addition, the Company also published and  distributed His Majesty the  King’s literary works “The Story of Tongdaeng”, “Royal Speeches” and CD ROM “The Royal Speech Given to the Audience of Well-wishers on the Occasion of the Royal Birthday Anniversary from 1993 to 1998” in Thai and English. It was the first time His Majesty the King’s speeches were gathered and recorded into CD ROM.

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Her Royal Highness Princess Maha Chakri Sirindhorn’s Literary Works

and  “Sri  Sawarindiranusaranee  Norm Rumluek Thueng Somdej Pra Panwassa Aiyikajao” (a compilation of the life and works of the late queen) book. The foundation also appointed the Company to print annual diary regularly starting from “Diary 2549/2006 Sat Liang Wang Sra Pathum” (Sra Pathum Palace’s Pet), “Krua Sra Pathum: Diary 2550/2007” (Sra Pathum Palace’s Kitchen) and, the latest for 2008, “Nai Rom Ngao Wang Sra Pathum” (In Sra Pathum Palace’s Sheter).

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HRH  Princess  Maha  Chakri Sirindhorn  Foundation  is  a  charity supporting the education of impoverished children and youth. The foundation raised fund through the publication of HRH Princess  Maha  Chakri  Sirindhorn’s literary works. In  1981,  the  foundation assigned Amarin to print the first of HRH travelogue series “Yam Daen Mangkon” (Traveling  the  Dragon  Land)  and afterwards  the  Company  continue  to receive opportunities to publish several

of HRH’s literary works in this series. In  addition,  the  foundation entrusted  the  Company  to  jointly development a web-based e-commerce channel to promote and distribute HRH’s literatures. The website www.amarin.com/ princess book was launched on July 25th, 2000. In 2005, HRH Princess Maha Chakri  Sirindhorn  granted  the establish- ment  of  “Queen  Savang  Vadhana” Foundation. The foundation entrusted the company to publish and distribute the poster featuring “the Descending Order of His Majesty the King’s Family Tree”

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The late Her Royal Highness Princess  Galyani  Vadhana Krom  Luang  Naradhiwas Rajanakarindra’s Literary Works

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of the Princess Mother) in 1996 and “Song Sadet Somdej Ya” (A Valediction to Her Royal Highness the Princess Mother) in 1997. The latter book has shown Her Royal Highness’s  perseverance  in  collecting daily news clippings on the late Princess Mother’s  deceased  and  Her  Royal  Cremation  Ceremony  from  several  local  newspapers. Her Royal Highness also made additional footnote to clarify certain parts of the publications. Publishing other Royal Books The Company also received a precious pride to publish other royal books. The Company was responsible to design and publish “Pan Mai Pra Tamnak Suan Pathum” (Plants in Suan Pathum Palace) to commemorate in the occasion of Her Royal Highness Princess Maha Chakri Sirindhorn’s 50th Birthday Anniversary. In addition, the Company was also assigned to design and publish “Saeng Neung” (The Spectrum ) and “Kue Rung Ngam” (A Beautiful Rainbow) on the occasion of the late Her Royal Highness Princess Galyani Vadhana Krom Luang Naradhiwas Raja- nagarindra’s 84th Birthday Anniversary.

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The late HRH Princess Galyani Vadhan  Krom  Luang  Naradhiwas Rajanakarindra  had  given  the  Company opportunities to publish some of her works since 1982. Her Royal Highness’s first literary works was the paperback of “Mae Lao Hai Fang” (Mother Told Me) whereas the Ministry of Education had requested for Her Royal Highness’s permission to publish. The book set the country’s record for highest number of copies printed. Afterwards, Her Royal Highness also permitted the Company to publish several of her sightseeing travelogues for example: “Sai Tharn Arayatham Chin” (The Stream of Chinese Civilization) in 1988 “Bhutan: the Green Island on Land” in 1989 “Turkey: Land of the Roman Emperors and Ottoman Sultans” in 1990 “Xinjiang and Gansu: Pictures from Far Away Places” in 1990 “Yunnan” (2nd edition, 1991) “Eastern China: Mountains, Lakes, Temples” in 1994 “Northeastern China and Sichuan” in 1997. Furthermore, there are others literary works from Her Royal Highness

where as the Company received her gracious permission to publish namely “Braisaneebat Jao Fah” (Postcards Games) in 1992 “Traa Paen Din Ratchasagoon Lae Sakul Agsorn Pranam and Nam Yor” (Royal Seals,  Royal  Families’  Coats-of-Arms, Family’s Coats-of-Arms, Royal Initials and Initials) in 1995 “Som Dej Chao Fah Mahidol and Ngarn Silpa” (Prince Mahidol and Art) which is bilingual literature (the 1st edition Thai - English 1995 and 2nd edition Thai - French (2006). In 2004, Her Royal Highness entrusted  the  company  to  publish her latest  literary works  “Maha  Makut Rajasantatiwong  Pranam  Prarajaoros Prarajanadda” (The Royal Family of Maha Makut: the Titles of Princes, and Princesses and Grandchildren). This book compiled names, photographs and short bio- graphies of the Princes, Princesses and  Grandchildren  from  the  direct  genea- logical branches from King Rama IV. One  of  the  most  important literary works was the Royal deceased and the Royal Cremation Ceremony of the late Princess Srinagarindra Boromara- jajonani. The Company also received Her  Royal  Highness’s  permission  to publish  these 2 special  books  namely “Jod Mai Het Chao Baan” (The Popular Chronicles from the Press: The Demise

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Rewards One of the top 5 Thai companies in the global market

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Forbes, a popular financial magazine, ranked companies with income less than 1 billion US dollars and with high business growth during 2004 - 2006. Among 200 companies in Asia, Australia and New Zealand, Amarin Printing and Publishing PLC is one of the top 5 Thai companies. This has shown the success of a Thai company that put its name in world market.

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More than rewards are opportunity The 8th Nai-Indra Award in 2008

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This is an arena for those who fascinates in writing to show off their competence. This event has been organized since 2000 into 6 writing categories including documentary, juvenile literature, Children’s picture book, novel, short story and poetry. In 2000, there were awards received in 2 writing categories as follow: The best short story Sompan Radab 8 by Tassanawadee The first runner-up short story   Pleng Cheewit by Sroi Sattaban Long by Phu Kradad The best poetry Maha Chalae by Worapa Warapa

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Inheriting the determination of Amarin’s founder The 4th “Chukiat Utakapan” Award in 2007

076

Mr. Chukiat Utakapan, the Company’s founder, had a determination to support and promote good books in order to be well-known in the market. To inherit his determination, the Company has organized an annual Chukiat Utakapan Award. In 2007, those who received this honorary prizes are “Loke Khong Kon Rai Baan” (World of the homeless) book by Boonlert Visetpreecha in the Sociology and Anthropology category and “Karn Muang and Sangkom nai Silpa Satapatayakum: Siam Samai Thai Prayuk Chartniyom” (Politic and Architecture Society: Applied Thai Nationalistic during Siam Period) book by Chatri Prakitanondakarn in the Art and literature category.

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Fairs & Launch Party In Style Magazine Launch Party: Fashion, Beauty, Celebrity & Lifestyle May 15, 2007 at Plaza Athenee Hotel The launch of In Style magazine was luxurious, grand and attractively decorated matching the leading women magazine. In Style presents living styles in every aspect including fashion, beauty, lifestyle and charity of the celebrity who make merits to the society. Princess Ubol Ratana Rajkanya Sirivadhana Pannawadee had graciously chaired the launch party. As well, various celebrities were also kind to join and to brighten the party. 077

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The 6th Amarin Book Fair: Seek for the Soul June 20th – 24th, 2007 at Queen Sirikit National Convention Center

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The annual Amarin Book Fair is another company’s pride and determination offering to readers. In 2007, jointly with 20 allied publishing houses, the Company had transformed the Grand Ballroom of Queen Sirikit National Convention Center into a mega bookstore under the Book Hyper- market style with services in giving opportunities to readers to take pleasure in purchasing books. There were also numbers of interesting activities such as new books launch, talks, demonstration including workshop from authors, interpreters and celebrities.

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The 3rd Health, Cuisine & Beauty Festival August 1st - 5th, 2007 at Queen Sirikit National Convention Center This is a fair for those with health conscious mind hosted by Cheewajit Magazine, Health & Cuisine Magazine and SHAPE Magazine. It was organized under “Thailand Best Fun Shopping for Health, Food and Beauty” concept. The fair gathered over 300 shops offering health & beauty products and attracted more than 100,000 interested people.

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Baan Lae Suan Fair 2007 October 30th - November 4th 2007 at Impact, Muang Thong Thani Exhibition Center

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This was the 8th consecutive year for home and garden lovers and was the largest fair in Thailand arranged by Baan Lae Suan magazine. The fair had perfectly combined knowledge offering and trade fair into one. It was a comprehensive gathering of all housing products, designs, and garden decorations & plants. In 2007, it was arranged with the theme “Harmony of different tone” by combining different designs for harmony and beauty.

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Charity Praew Charity 2007: Cerebrating Praew Magazine’s 28th Year Anniversary September 14th, 2007 at Siam Paragon

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081

Annually organized consecutively since 2002, the “Praew Charity 2007” was arranged on the occasion of Praew magazine’s 28th anniversary. The objective was to raise fund to help children, women and those disadvan- tages. Donated through Praew Charity Funds, the total fund of Baht 2,000,000 was given to 5 foundations including the National Elephant Institute under the late Her Royal Highness Princess Galyani Vadhana Krom Luang Naradhiwas Rajanagarindra patronage and the Forest Industry Organization, Foundation for Handicappe, Wat Sra Kaew’s Orphanage and Impoverished Welfare, Saeng Thien Group Foundation (Wat Bang Sai Gai) and Foundation for Stray Dogs.

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SHAPE Run for Life 2007 Charity Run November 10th, 2007 at Queen Sirikit National Convention Center

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An excellent accomplishment “SHAPE Run for Life 2007”, the charity run activity was arranged by Shape magazine and gathered more than 1,200 women to run for health. The total fund of Baht 280,000, raised from the enrollment fee without expenses deduction, was given to “Siriraj’s Breast Cancer Education and Research Foundation” for their breast cancer researches.

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The 4th Sudsapda Shopping Market November 24th, 2007 at Siam Paragon Sudsapda organized this event for 4 years running and continued to be the center for largest collection of second-hand brand name products from actors, actresses and celebrities presided with 80 participating booths ran by celebrities from various circles. The proceed from sales of products and contributions totaling Baht 150,000 was donated to Dhammaraksa Foundation of Wat Pra Bat Nam Pooh to help HIV patients, making benefit and raising social level. In addition, there was the announcement of “Sudsapda Young & Smart Vote� rewards for the most popular actor, actress, model, radio station and celebrity in 2007. 083

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People

Amarin Team Staff Welfare Internal Activities Social Activities Environment Management

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Amarin Team everyone is working with affection in his/ her career and congregating their profes- sional experiences to create high quality job and to share with the society as well as simultaneously grow and move forward steadily. In 2007, the Company has over 1,000 staff members as a large family at a house called Amarin Corporate Park by the Bangkok Noi canal. The Company is divided into publishing and printing businesses to create high quality job. In  the  Publishing  Business, other  than  administration,  marketing and public relations, human resources, motor, building and security staff, the business  is  also  divided  into  several  sections  according  to  production  such as  m a g a z i n e s ,   b o o k s   a n d   n e w businesses. The central production unit will assist in information, technology and editing for correction such as subediting, proofreading, information and technology, and data center. Printing Business has lots of staff working 24 hours regularly at the printing press and several machines including production conveyor in every part of the printing house no matter it will be in the area of proof platform, binding platform, adhesive  platform,  cutting  platform,

packaging,  warehousing,  etc.  Each department  is  an  important  cog  which cannot be missed out at all. Over the past 30 years, the staff members from both businesses are working dependently and living together as a large family with the founder, Mr. Chukiat Utakapan, as the head of the household and the backbone that Amarin staffs always trust with immerse ideology and determination to “work for happiness and prosperity of the society” together with  well  rounded  competence,  atten- dance to team and work as well as reliability which made “Amarin” name accepted in printing industry. Though Mr. Chukiat has departed, everything that Mr. Chukiat has initiated and collected has grown fruitfully and trustfully. In 2007, Amarin Printing and Publishing  Public  Company  Limited under Mrs. Metta Utakapan and new management remains a warmth house with good-natured and is the center for old and new generation who are proficient, experience, reliable, hard working, patient, highly responsible, good interpersonal skill,  family  oriented  and  modernize. Everyone is working together happily with love to their jobs, their colleagues… and Amarin.

090

Starting from only 4-5 staffs in a small editorial department performing under “Warasarn Baan Lae Suan Limited Partnership” with Mr. Chukiat Utakapan as the main backbone, another business had grown to “Amarin Printing Limited Partnership”. Two Businesses were together on Arun Amarin Road which comprised of the former staffs from Baan Lae Suan magazine and various units in printing house department. Later, Warasarn Baan Lae Suan Limited Partnership changed its status to “Baan Lae Suan Love Praew Co., Ltd.” and Amarin Printing Limited Partnership changed to Amarin Printing Group Co., Ltd. In 2533, all of business was Trans- fered to Amarin Printing Group Co., Ltd. In 2536, the Company changed to the public company in the name of Amarin Printing and Publishing Public Co., Ltd Mr. Chukiat Utakapan had been the role model to those who worked with strong will to create happiness and prosperity to the society. These have been passed along to staffs from generation to generation. Today, the day when “Amarin Printing and Publishing Public Company Limited” has more than 1,000 members in both publishing and printing businesses,

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Staff Welfare Along with business success, one thing that the Company has always given priority on is the staff welfare and the  good  social  environment.  The Company has arranged and supported activities that benefiting staff quality of lives and supporting both physical and mental health as well as promoting staffs to contribute to various social activities. Therefore,  there  are  various projects initiated for the benefit of Amarin’s staffs at which one of Company’s proudest projects is “Baan Khun Noo Project (Kids Home project)”. This project has been continuously organized for several years with the objective of promoting relation- ships within families especially those staffs with obligations to raise children in studying age. The Company believes that the family is the most important social unit while several families currently

struggle to earn their livings which may impact children caretaking. Hence, the Company has arranged a venue with crews to take care of staffs’ children during the office hours. This project is deemed as a way to lay foundation to warmth families which is the most precious for family and future society. Another important welfare is to educate staffs to understand the benefit of savings. The Company thus set up “Amarin Taweesuk Saving Cooperation Limited” and registers as juristic body in compliant with commercial laws. This gives opportunities to all staffs to join as members and to participate in managing the Co-op. This enables all staffs to save and to live sufficiency following the Royal remarks by His Majesty the King. In addition, the Company also opens the “Debt problem consulting clinic” aiming

to give counseling services on problem in credit card debts, off-system debts (loans shark) as well as educate staffs on their financial and money matters. Besides, there are other staff welfares such as leave, accident insu- rance, medical benefits, childbirth caring support, child tuition fee supports, Govern- ment Saving Bank loans, provident funds, funeral support funds and loan supporting fund as well as sports and leisure projects. These welfares apply differently to each individual base on year of services, title or guidelines of each type of welfare. On specifying or apportioning these welfares, it is up to current specific circumstances and needs of major staffs. All welfares are parts of initiatives aiming to boost morale in staffs and their respective families. This will increase staffs’ readiness both physically and spiritually.

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Internal Activities Beyond  our  core  mission  in creating  quality  print  matters,  the Company  also  supports  activities benefiting  employees’  quality  of  lives and enhancing employees’ health by strengthening their bodies and souls and to promote employees’ unities. Therefore,  there  are  a  lot  of internal activities at which one of them is “Dharma Practices and Dharma Talks” project. This activity is to arrange monthly Dharma Talks and Dharma practices at least 2-3 times a year. Employees and interested  persons  can  attend the activity without any cost. The Company also invites communities around the Company’s premises, teachers and students from various schools to attend. Amarin  also  encourages  em- ployees for good health by organizing “Amarin Game”. There are several sports competitions  according  to  employees’ skills  and  willingness  such  as  futsal, basketball, table tennis, badminton, etc. This will lead to unity and to encourage setting  up  clubs  in  order  to  bring continuous  health  care.  Besides,  the Company also provides daily exercises classes by hiring aerobic and yoga instructors  and  starts  new  project “Cheewajit  for  Health  Course”  for interested staffs. In addition, the Company also organizes traditional festivals such as New Year’s Party to celebrate New Year. The party consists of merits makings and top management blessing. Moreover, employee will participate in lucky draw to get present from management and gold on long service awards for employees with 10 years, 20 years, 25 years and 30 years of services with the Company.

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The Company has organized San Sampan Songkran Festival to enhance employee’s relationship. The festival starts with merit making by offering food (rice, dried food) to monks, Buddha images parade ceremony, freeing birds and fishes, bathing rites for Buddha images and paying respect by pouring scented water to senior Amarin’s top management in front of Mr. Chukiat’s statue located by the waterfront and joyful splash water to each other in a warm and friendly way. Chukiat  Honorable  Day  is organized annually on May 10th which is the Company’s founder, Mr. Chukiat Utakapan’s  birthday.  On  this  special date, there will be merit making by offering food  to  monks,  employee’s  luncheon parties  and  remembering  Mr.  Chukiat activity in the afternoon. The concept of the activity changes every year. For 2007, the  Company  has  magically  created Mr. Chukiat’s exhibition in the Convention Hall by showing Mr. Chukiat’s personal belongings when he was alive and let employees  who  worked  during  Mr.  Chukiat’s era bring pictures, articles or stories which remind them of Mr. Chukiat to join in this exhibition as well as invite those who worked with Mr. Chukiat both internally and from outside the Company such as friends to tell their passions and impressions when Mr. Chukiat was alive. There are also works of Mr. Chukiat and his  lifestyle  which  enlighten  Amarin’s Culture  that  Mr.  Chukiat  has  created until now. Amarin Charity Fair is organized to raise fund for Amarin’s employees who are in trouble and need help by having stall sell by management, auctioning management precious things, setting up stall for selling cheap goods, etc. Part of

the income will be donated to help those employees who are in trouble. Besides, there are also stage performances such as  musical  performance  and  singing contest aiming to create colorful, friendly and fun atmosphere and for employees to participate in helping each other. Amarin Ruam Jai Perd Tai Khai Khong (Amarin Unity Garage Sales) is organized annually during Loy Kratong Festival under “Amarin Ruam Jai Perd Tai Loy Kratong”. If it was not coincide with Loy Kratong Festival, the name will be “Amarin Ruam Jai Perd Tai Khai Khong” instead. The event provides opportunities for interested employees to book selling booths and bring goods for sales at friendly prices such as clothes, bags, shoes, appliances including food and drinks. Besides, there are performances by employees from all 3 divisions, star picking booth from Central Committee. Income  from  booths  sale,  star  picking and donations will be contributed to all sort of public charities. In 2007, all income was given to help teachers in 3 southern border provinces.

Social Activities

The Company provides supports to various organizations in the area of education,  religion,  environment  and make  donations  to  public  charities  such  as  assisting  flood  sufferer,  supporting teachers in 3 southern border provinces, donating books, learning instruments and sports equipment to deficient schools under “Pan Kwam Rak Duay Kwam Roo (To share love by knowledge) Project”, donating blood and bodies to the Thai Red Cross Society.

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Environment Management

rais of land next to the site of the existing Printing Business Operation which would eventually contribute to the seamlessly smooth operation. Relocated to the new site in Aprin 2004, the Publishing Business is today housed in a modern office building with beautiful design both in the interior and exterior. In the meantime, the space in the old Printing Building was also transformed into Amarin Corporate Park, a move that makes the new head office one of a handful of office buildings in Thailand to be located in a pleasant ambience of green trees and running water. Working in this environ- ment, the staff is inspired to produce quality work in all forms of media for the society in line with the resolve of the late Mr. Chukiat Utakapan that “We work for the happiness and prosperity of our society”

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Over the past three decades, Amarin has grown from strength to strength in an operation whose business is to offer a comprehensive range of quality printing services, distinguished by printing tech- nology and aesthetic values through advanced technology and care at every stage of the production. As a result, we have become the first printing factory in the country to be awarded ISO 9002:2000, the quality standard certification, following the effective and speedy services we have been making available to our customers. At the same time, the overall environment in the working and neighboring areas was also taken into consideration with the concrete result of the introduction of an effective environment management system for the Printing Business. Subsequently,  a  new  office building for the Publishing Business was built over a total area of more than 11

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097

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THE BLOSSOM OF WEALTH ACHIEVEMENT 51-ME-001_098,100-113_ Eng_W.ind98 98

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Profit

Shareholders Risk Factors Financial Report 2007 Operating Results and Financial Performance Financial Audit Report

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Shareholders Shareholders Structure 1. Shareholders with share higher than 5% of the total share amount as of December 31, 2007.

2003

Shareholders

2004

2005

2006

2007

No. of shares % No. of shares % No. of shares % No. of shares % No. of shares %

Thailand Securities Depository Co., 3,658,296 19.25 - 38,860,396 19.43 38,804,976 19.40 39,286,503 19.64 Ltd for Depositors Mrs. Metta Utakapan Thailand Securities Depository Co., Ltd for Depositor Ms. Rarin Utakapan Mr. Rapee Utakapan

7,067,400 37.20 74,393,662 37.20 74,393,662 37.20 74,393,662 37.20 74,393,662 37.20

1,794,200 9.44 - 17,850,832 8.93 19,477,832 9.74 19,106,832 9.55 1,760,700 9.27 18,533,684 9.27 18,533,684 9.27 18,533,684 9.27 18,533,684 9.27 1,652,000 8.69 17,389,474 8.69 17,407,896 8.70 17,407,896 8.70 17,407,896 8.70

2. Shareholding Structure of Company management Management Member Shareholding Shareholding Structure

100

Mrs. Metta Ms. Rarin Mrs. Supawadee Mr. Cheewapat Mr. Praphan Mrs. Nuanchan Ms. Ampawan

Utakapan Utakapan Komaradat Nathalang Prabhasavat Supanimit Boonchouy

37.20 9.27 0.30 0.10 0.02 0.05 0.55

% % % % % % %

3. Dividend Pay Out Policy: The company’s dividend payment policy is to pay no less than 60% of net profit after corporate

income taxes. 4. Management Remuneration: Management Remuneration for 2007 consists of meeting fee for independent directors

and for directors and management who are the Company’s employee received their remuneration in form of salary and

bonus summarized as below: 15,734,250 Baht Nine Executive Directors 32,596,315 Baht The top 15 Management Members 34,937,361 Baht The rest of Management Members

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Risk Factors The  Company’s  operating  results depend on 2 major risk factors that could lead to risks to investors or impacts on share issuers. Those risks are: Risks from shortage of products and raw materials Paper is an important raw material for producing magazines or books and external printing orders. The cycle of paper price constantly fluctuates with the market demands and economic policies. When the price rapidly fluctuates, the Company will purchase three to six months for the amount in accordance with the printing demand. This will help lessen the risk from paper price fluctuations. During the stable price, the Company will place order only on the amount need for each job.   With  regards  to  sources  of  raw materials, the Company has a “Sourcing Committee” who locates primary suppliers as well as alternate ones just in case should the Company loses those primary suppliers.

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Copyrights Risks Because the Company is in the magazines and books publishing market that highly competing in contents and continuously providing high quality and modern  looks.   On  both  counts,  the Company needs to have its own internal creativities and purchases copyrighted external publications either directly from authors or through authorized copyrights agents by enter into legally binding contracts. Those contracts usually have fair and transparent detail terms and conditions. Therefore, the Company is protected from any risk in copyrights. Payment  Risks  on  Trade  Account Receivables The Company may have some risks from customers’ ability to pay trade

account receivables. The Company has mitigated such risks by carefully selecting capable  customers,  requiring  certain collateral on new clients, setting credit line and credit term uniquely and clearly for each customer, closely monitoring or collecting and visiting customers regularly. Interest Rate Risks The Company may have some risks from interest rates volatility on its financial  management. The Company has very clear financial policies for choosing suitable financial tools at the minimal cost. The Company has never hold or issued any financial instruments intended for speculation or trading that are against company’s businesses. Exchange Rate Risks The Company may have some risks arisen from equipments payments in foreign currencies. However, the Company has mitigated such risks through the use of forward foreign currency contracts in every transaction.

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Risks in Printing Industry The Company has invested in large printing house on its own and also continuously improved printing technologies.

Today it is one of the most modern facilities in the country with sufficient production capacity  to  accommodate  magazines, books and external printing orders. It can effectively manage printing cost and accurately  determine  the  production schedule for all printing jobs. Therefore, the Company hardly has any risk in terms of production capacities.

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Other References Thailand Securities Depository Company Limited 4th Fl, 6-7 Stock Exchange of Thailand Building Rutchadapisek Road, Klong Toei Sub-district, Klong Toei District, Bangkok 10110

Auditors

Sam Nak-Ngan A.M.C Company Limited. 191, 19th Fl, Silom Complex Building, Silom Road, Bang Rak District, Bangkok 10500 Tel: 0-2231-3980 to 7, Fax: 0-2231-3988

Legal Counselor

Khunnatham Law Office 72/2-3 Suthisarn Winitchai Road, Sam Sen Nok Sub-district, Huai Khwang District, Bangkok 10310 Tel: 0-2274-7529 to 30,  Fax: 0-2274-7638

Business Consultant

Pattana Wijai Company Limited 1215/6 Euar-Suk Village, 15 Pattanakarn Road, Phra Khanong District, Bangkok 10260 Tel: 0-2322-4188

Regular Contact Financial Institutions

Bangkok Bank Plc, Banglumpoo Branch Kasikorn Bank Plc, Bangyeekan Branch Siam Commercial Bank Plc, Banglumpoo Branch

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Registrar

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Financial Report Management Certificate February 18, 2008.

Khun Prapasri Leelasupa Certified Public Accountant Sam Nak-Ngan A.M.C Co., Ltd. 19th Floor Unit 4, Silom Complex Building 191 Silom Road, Silom Sub-district Bang Rak District, Bangkok 10500 This certificate is given for your benefit in auditing Amarin Printing and Publishing PLC financial statements for the period ending December 31, 2007. This is in order for you to express the opinion that the aforementioned financial statements has shown the Company’s financial condition as of December 31, 2007, overall operations and cash flow for the same period is whether accurate based on general certified Accounting Principles or not. To the best of my knowledge, I certify that the details in the financial statements that you are auditing ought to be as follow: 1. General 1.1 I am responsible for the accuracy and completeness of information in the financial statements that you have audited. These financial statements were prepared in accordance with Thailand General Accepted Accounting Principles and any governing laws. 1.2 I have appropriately selected accounting policies and accounting information disclosure by not showing information that are contrary to important facts under consideration based on each transaction subject matter and format that should appear in the financial statements as well as

103

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104

omitted to show any transaction and information for preparing financial statements. 1.3 I have informed all major at which Management Committee and/or the Board of Directors have discussed with regards to financial statements preparation including problem solving process on all issues. 1.4 I am responsible for the design and sufficiently and appropriately execute of the accounting system and internal control system. These include appropriateness in the segregation of staffs’ duties under closed supervisions which cover all business transactions to prevent and to discover any errors. This will lead to a reliable financial statements preparation process. 1.5 I am responsible for the information given to you for auditing as follows: 1.5.1  Accounting and Financial memorandums including documents evidencing and supporting accounting & financial transactions and all related information. 1.5.2  Complete copies of Minutes of the shareholders meetings, the Board of Directors meetings, the Management Committee meetings, Audit Committee meetings and other Sub-committee meetings (if any) and/or meeting notes which have not yet been prepared in minutes of the meeting format that were recorded based on fact from the beginning until the date shown on this certificate with the following details: - The minutes of the common shareholders’ meeting 1/2007 on January 23rd, 2007 - The minutes of the Audit Committee meeting 1/2007 on January 23rd, 2007 - The minutes of the Audit Committee meeting 2/2007 on March 28th, 2007 - The minutes of the Audit Committee meeting 3/2007 on May 2nd, 2007. - The minutes of the Audit Committee meeting 4/2007 on August 21st, 2007. - The minutes of the Audit Committee meeting 5/2007 on November 30th, 2007 - The minutes of the Management Committee meeting 3/2007 on February 15th, 2007. - The minutes of the Management Committee meeting 4/2007 on March 7th, 2007. - The minutes of the Management Committee meeting 5/2007 on April 26th, 2007. - The minutes of the Management Committee meeting 6/2007 on May 17th, 2007. - The minutes of the Management Committee meeting 7/2007 on June 7th, 2007. - The minutes of the Management Committee meeting 8/2007 on June 21st, 2007. - The minutes of the Management Committee meeting 9/2007 on June 28th, 2007 - The minutes of the Management Committee meeting 10/2007 on July 26th, 2007. - The minutes of the Management Committee meeting 11/2007 on August 16th, 2007. - The minutes of the Management Committee meeting 12/2007 on September 6th, 2007. - The minutes of the Management Committee meeting 13/2007 on September 20th, 2007. - The minutes of the Management Committee meeting 14/2007 on October 11th, 2007. - The minutes of the Management Committee meeting 15/2007 on November 1st, 2007. - The minutes of the Management Committee meeting 16/2007 on December 6th, 2007.

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51-ME-001_098,100-113_ Eng_W.ind105 105

105

- The minutes of the Management Committee meeting 17/2007 on December 26th, 2007. 1.6 The Company has no plan or intention to conduct any activities that may materially affect accounting values or assets and liabilities classifications shown in audited financial statements at the end of the period. 1.7 The Company has no transaction that breaches any laws or regulations as well as in contrary to any announcements made by the Securities and Exchange Commission that must be disclosed in financial statements or be used as guidelines in recording profit and loss which may occur in the future. 1.8 The following informations are recorded or disclosed in financial statements. 1.8.1 List of individuals, partnerships, companies or related parties were completely indicated based on general accepted accounting principles or notifications from both the Securities and Exchange Commission and the Stock Exchange of Thailand. This also includes business characteristic and Company’s business transactions as stated in the attachment 1 that includes names, business transactions, amount, major conditions and guarantees occurred during the period. 1.8.2 List of Assets, Liabilities and Profit/Loss which may materially arise including guarantees. 1.8.3 List of rights and agreements given to other person to purchase the Company’s common shares, common shares reserved for rights exercise on warrants, rights to buy back common shares, share conversion and other conditions including such obligations which has yet occurred. 1.8.4  List of communications with financial institutions that offer rewards or cause restrictions in cash transactions and credit lines or similar communications with other kind of financial institutions. 1.8.5 List of individuals or groups of high risk financial instruments including off balance sheet financial derivatives (such as Futures, Options, Swaps) including future securities trading contracts, both contractually specified and amount. 1.8.6 List of non operating assets 1.8.7 List of loans or restructuring loans which have interest or principal paid as a result of borrowers’ financial problems. 1.8.8 List of assets sold with repurchase agreements. 1.8.9 List of events occur after financial statements date. 1.9 I certify that the statement reported in the report form of directors or partners or managers per Attachment 2 are accurate and complete. 1.10 During this period, there are no significant changes in accounting policies that may materially impact to financial statements unless stated otherwise.

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1.11 I certify that there are no differences from auditing report arising from non-adjusted items. 1.12 Effect from fraud and conflict of interest. 1.12.1 There are no frauds related to management or employees who have important roles within internal control system structure that may significant impact on financial statements. 1.12.2 There are no cases where employees or workers with interests in other companies which the Company conducts business with that may need to consider any conflict of interest issues. 1.13 Management is informed that the Company has major trading risks with any person or any group.  These  transactions are in line with the followings criteria and are necessarily considered for disclosure in the financial statements. 1.13.1 Already occurred as of this financial statements date 1.13.2 Severely affecting risks to the Company that may arise in the near future. 1.13.3 There are reasons to believe that such severely effect incidents may occur in the near future.

106

2. Assets 2.1 I have reviewed accounting value of all non-current assets whether or not they show higher value than accounting value. I have also considered any impairment in case where there are any events or changes in situations that impact the expected return in accounting value of those assets. In case of assets impairment, it will be recognized and appropriately shown in the financial statements. 2.2 The Company has set guidelines to assign the senior officers to be responsible for verifying the appropriateness of the insurance policy at least once a year. This is to ensure that insurance covered assets and risk which can be insured and it has been done accordingly. I have opinions that the insurance are appropriate and sufficient. 2.3 I have classified investments in debts and equities in accordance with investment management objectives and investment value. Those investments are presented with fair value under general accepted accounting principles. In case of assets impairment, they will be realized in profit and loss statements. 2.4 All current assets anticipated to occur from the core business operations have shown their value of no less that indicated in financial statements. Especially, bad debts reserved are adequately set for immovable or obsolete products or immaterially unusable products.

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3 Liabilities 3.1 The Company has no future sale contracts exceeding normal quantity or price that may lead to non-accrual losses. Besides, there are no buy back contracts for those trading transaction which have already been sold. 3.2 On financial statements date, the Company has not charged and demanded for damages to the Company except for those disclosed in financial statements. 3.3 I have performed in accordance with all conditions agreed in the contracts which in case of violation will highly affect the financial statements. 4. Shareholders’ Equity The Company does not enter into any agreements that resulting in providing financial supports to others whether direct or indirect or concerning the Company’s shares possession. 5. Information Systems The Company has not changed or used new information systems or other event occurred during the year which have severe impacts to the completeness and accuracy of the information systems and related information other than those notified.

Yours truly,

(Mrs. Metta Utakapan) Chief Executive Director

(Ms. Thanaree Pimparu) Accounting and Finance Director

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2007 Operating Results and Financial Performance Printing business In  2007,  Printing  business posted a drop in printing services revenue of  13.76%  comparing  to  2006.   The declined revenue was due mainly from economic slowdown and more severe pricing  competition.   However,  the Company still continues to maintain the quality of all external printing services by investing in high technology machines and equipments, continually developing into new printing technology as well as developing competitive strategies. Publishing business Income from sales of advertising spaces:  Though the overall market for magazine advertisements had declined by  8%,  the  Company  has  gained advertising market share at which income had increased by 2% comparing with 2006. In 2007, by acquiring copyrights from Time Inc. (USA), the Company had launched In Style, a new women magazine whereas  contents  include  fashion,  beauty,

celebrities and lifestyles. As a result, the Company now has 11 bi-monthly and monthly magazines in its portfolio. Income from printed matters sale: Income from sales of 11 magazines and books from affiliated publishers increased by 7% from 2006. Because in 2007, the Company had won the right to translate and publish “The Secret”, the world class book that had very high sales volume along with other high volume books, such as “30 Ways to Defeat Destiny” by world renown conductor, Bundit Ungrangsee. In addition, the Company had become a pioneer in publishing modern and fun-to- read Dhamma books. All of which had continually helped books sales in 2007. Income from travel services and seminars: The company has opened up new travel routes both domestics and overseas together with travel, training and seminar arrangements to various organizations or individuals under the concept of “The Ultimate Experience with Amarin Tours” by emphasizing on high

108

Operating Results Overview The Company’s core business is the production of printing matters such as magazines and books, sales of magazine advertising  spaces,  seminars  and traveling services and external printing services. There are 2 main businesses within the Company including Printing business and Publishing business. In 2007, Amarin Printing and Publishing Plc recorded total income of 1,715 million Baht, representing a slight drop of 1.85% from 2006. A drop of 16% from 2006, the Net Profit in 2007 was 225.37 million Baht or 1.13 Baht per share. Total Income The  Company  posted  total Income from sales and services of 1,682 million Baht or 2% drop from 2006 and can be classified according to business structure as follow:

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service quality. In addition, the Company also  put  together  several  seminar programs to satisfy customer needs, to ensure customer benefits and knowledge. As a result, the Company had posted a satisfactorily income during the year. I n c o m e   f r o m   e x h i b i t i o n arrangements and television productions: The Company had organized 2 important fairs, “Baan Lae Suan Fair” which was arranged at Impact Exhibition Center, Muang Thong Thani and “Health, Cuisine & Beauty Festival” which was organized at Queen Sirikit National Convention Center. Both fairs were very well accepted by visitors and exhibitors. On the television productions, though the “Baan Lae Suan Magazine on TV” program was finally off the air because of schedules rearrangements at the TV station, the Company has still produced the “Health Club” on TV 7 which aired on every Tuesday 4:15 p.m. to 4:30 p.m. and is well accepted by the public. Therefore, the Company is determined to produce new and high quality TV programs in the future.

Costs and Expenses In 2007, the Company had total cost of 1,143 million Baht, representing a slight increase from last year. This was due to the recently launched new magazine that had yet to break-even. However, when comparing the ratio between cost and income, in 2007 such ratio was at 66.68% and was very close or showed little increase to that of 2006 of 65.18% Sales and Administrative Expenses In 2007, the Company recorded 245.75  million  Baht  as  sales  and administrative  expenses,  showing  a 2.33% increase from 2006, though with marketing expenses on launching new magazine. The Company had well and effectively  controlled  expenses  to  be within budget by having every department in the organization to pay strict attention and put high importance on expense control per policies.

Net profit In 2007, with the total income of 1,715 million Baht representing some decrease from last year together with rising costs and expenses in launching new magazine that has yet to break-even and increase in corporate income tax rate from 25% to 30%, the Company’s Net Profit  posted  at  225.37  million  Baht showing a 16.40% drop from last year. The net profit now represents 13.14% net profit to sales ratio or 1.13 Baht per share. When comparing with such a slowdown economic condition, the net profit can be rated as satisfactory.

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Amarin Printing and Publishing Public Company Limited RATIO ANALYSIS

2006

2007

Ratio Ratio Ratio Time Day Time Day Time Day Day

1.75 1.26 1.10 4.53 80 6.20 58 5.86 61 76

2.47 1.88 1.26 4.30 84 6.62 54 6.51 55 83

2.43 1.98 1.11 3.55 101 6.65 54 5.73 63 93

% % % % % %

33.80 20.90 1.27 119.11 15.55 18.47

33.76 21.08 1.60 116.42 15.43 18.86

32.01 18.99 1.93 120.60 13.14 14.81

% % Ratio

14.57 23.22 0.94

15.21 25.50 0.99

11.98 22.63 0.91

Ratio Ratio Ratio %

0.28 6,977.95 2.93 64.05

0.21 602.57 1.53 59.35

0.27 757.41 0.99

110

Liquidity Ratio Current Ratio Quick Ratio Liquidity Ratio (cash basis) Receivable Turnover Average Collection Period Inventory Turnover Inventory Turnover Period Account Payable Turnover Payment Period Cash Cycle Profitability Ratio Gross Profit Margin Operating Profit Margin Other Income Ratio Cash per Profitability Ratio Net Profit Margin Return on Equity Efficiency Policy Ratio Return on Total Assets Return on Fixed Assets Assets Turnover Financial Policy Ratio Debt to Equity Interest Coverage Debt Coverage Dividend Pay out

2005

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Income Statement Comparison Fiscal Year ended December 31, 2007 and 2006 Category

2006

Income Income from Sales and Services Other Income Total Income Less: Cost of sales Gross Profit Less: Sales and Admisnistrative Expenses Sales and Administrative Expenses Interest Paid Corporate Income Tax Total Sales and Administrative Expenses Profit after Sales and Administrative Expenses Add: Profit (Loss) from Associated Company Net Profit Net Earning per Share (Baht)

Amount

2007 %

1,682,256 98.07 1.93 33,025 1,715,281 100.00 1,143,799 66.68 571,482 33.32 245,754 651 99,707 346,112 225,370 - 225,370 1.13

Unit:Thousand Baht Increase (Decrease)

14.33 0.04 5.81 20.18 13.14 - 13.14

Amount

%

1,719,702 98.40 27,954 1.60 1,747,655 100.00 1,139,084 65.18 608,571 34.82 240,169 876 97,934 338,979 269,592 - 269,592 1.35

13.74 0.05 5.60 19.40 15.43 - 15.43

Amount (37,446) 5,072 (32,374) 4,715 (37,089)

% (2.18) 18.14 (1.85) 0.41 (6.09)

5,584 2.33 (225) (25.65) 1,773 1.81 7,133 2.10 (44,222) (16.40) - - (44,222) (16.40)

111

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Amarin Printing and Publishing Public Company Limited 2003-2007

Balance Sheet (Company Only) As of December 31

Unit:Thousand Baht

2007

2005

2004

2003

107,248 - 281,306 163,480 166,740 22,646 741,420 2,500 1,039,986 11,629 1,795,535

112,409 - 265,831 89,871 177,184 20,165 665,459 2,500 1,074,156 7,730 1,749,846

55,407 970 - - 211,818 219,303 89,439 71,433 140,512 88,284 22,363 19,233 519,540 399,223 - 258 943,094 826,484 2,254 1,971 1,464,888 1,227,936

- 172,834 9,702 46,769 70,460 6,208 305,974 200,000 270,000 25,000 994,562 1,489,562

- 176,917 8,480 36,315 158,165 - 379,876 200,000 270,000 25,000 874,970 1,369,970

- 561 158,987 80,640 19,498 25,073 31,970 32,911 88,638 49,533 - - 299,093 188,718 200,000 190,000 270,000 270,000 25,000 25,000 670,794 554,218 1,165,794 1,039,218

1,795,535

1,749,846

1,464,888

1,227,936

112

Assets Cash on hands and Bank Deposits 104,482 Short Term Investment 190,000 339,599 Trade Accounts and Notes Receivables Trade Accounts Receivables-Related Companies 162,129 Inventories 177,014 Other Current Assets 23,733 Total Current Assets 996,958 Investments in Other Companies 2,500 Property, Building and Equipments 951,566 Other Assets 16,807 Total Assets 1,967,831 Liabilities and Shareholders’ Equity Bank Overdraft - Trade Accounts and Notes Payable 226,499 Other Payable 39,826 Accrued Corporate Income Tax 56,350 Other Current Liabilities 86,879 Other Non-Current Liabilities 3,346 Total Liabilities 412,900 Shareholder’s Equity Paid-up Capital 200,000 Share Premium 270,000 Legal Reserve 25,000 Unappropriated Retained Earnings 1,059,932 1,554,932 Total Shareholders’ Equity Total Liabilities and 1,967,831 Shareholders’ Equity

2006

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Amarin Printing and Publishing Public Company Limited 2003-2007 Income Statement As of December 31

2007

2006

2005

2004

2003

Income Income from Sales and Services 1,682,256 1,719,702 1,486,803 1,287,124 1,042,118 Other Income 33,025 27,954 19,196 44,813 85,780 Total Income 1,715,281 1,747,655 1,505,999 1,331,937 1,127,898 Expenses Cost of sale 1,143,799 1,139,084 984,252 838,201 657,516 200,618 195,020

Sale and Administrative Expenses 245,754 240,169 207,025 876 65 185 199 Interest Expenses 651 69,785 Income Tax 99,707 97,934 80,482 74,980 Total Expenses 1,489,911 1,478,064 1,271,824 1,113,983 922,520 Gross Profit 225,370 269,592 234,175 217,953 205,378 Add Profit (Loss) from Associated Company - - - (259) (8,852) 225,370 269,592 234,175 217,695 196,526 Gross Profit after Associated Company Unappropriated Retained Earning Brought Forward 994,562 874,970 670,794 554,218 452,692 649,218 Retained Earning Before Appropriated 1,219,932 1,144,562 904,970 771,913 Less  Dividend Paid 160,000 150,000 30,000 101,119 95,000 - - - Legal Reserve - Income Tax Adjustment - - - - Total Appropriated Profit 160,000 150,000 30,000 101,119 95,000 Unappropriated Retained Earning Carry Forward 1,059,932 994,562 874,970 670,794 554,218 1.13 1.35 1.17 1.09 0.98 Net Earning per Share

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AUDITOR’S REPORT

To the Shareholders of AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED I have audited the balance sheets as of December 31, 2007 and 2006, the related statements of income, changes in shareholders’ equity and cash flows for the years then ended of AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED. These financial statements are the responsibility of the Company’s management as to their correctness and completeness of the presentation. My responsibility is to express an opinion on these financial statements based on my audit. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance as to whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statements presentation. I believe that my audit provides a reasonable basis for my opinion. In my opinion, financial statements referred to above present fairly, in all material respects, the financial positions as of December 31, 2007 and 2006, the results of operations and cash flows for the years then ended of the AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED in conformity with the generally accepted accounting principles. SAM NAK-NGAN A.M.C. CO., LTD. (Miss Praphasri Leelasupha) Certified Public Accountant (Thailand) Registration No. 4664 Bangkok, February 18, 2008

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED BALANCE SHEETS As of December 31, 2007 and 2006

Unit : Baht 2007

2006

ASSETS CURRENT ASSETS Cash and Cash Equivalents (Note 5) 104,482,453.39 107,248,252.59 Short-Term Investment (Note 6) 190,000,000.00 Trade Accounts and Notes Receivable-Net (Note 7) 339,599,477.03 281,305,773.76 Trade Accounts and Notes Receivable-Related Companies-Net (Note 4.1 and 8) 162,129,094.41 163,480,119.63 Inventories (Note 4.1 and 9) 177,014,291.75 166,739,749.75 Supplies for Machines 9,413,269.38 9,843,143.67 Other Prepaid Expenses 4,432,105.27 5,905,158.00 9,887,604.83 6,897,655.26 Other Current Assets TOTAL CURRENT ASSETS 996,958,296.06 741,419,852.66 NON-CURRENT ASSETS Investments in Equity Instruments-Net (Note 10) 2,500,000.00 2,500,000.00 Property, Plant and Equipments-Net (Note 11) 940,341,839.24 1,032,689,540.73 Computer Software-Net (Note 12) 11,224,315.27 7,296,803.54 Fixed Deposit pledged as Collateral 53,269.26 52,615.13 Copyright for Books 14,090,749.96 10,332,363.81 Other Non-Current Assets 2,662,967.88 1,243,862.36 TOTAL NON-CURRENT ASSETS 970,873,141.61 1,054,115,185.57 TOTAL ASSETS 1,967,831,437.67 1,795,535,038.23 Notes to financial statements are an integral part of these financial statements. 115

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED BALANCE SHEETS As of December 31, 2007 and 2006

Unit : Baht

LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES Trade Accounts and Notes Payable Current Portion of Long-Term Liabilities (Note 13) Advance Received of Printing Undued Output Tax Accrued Corporate Income Tax Accrued Expenses Others Current Liabilities TOTAL CURRENT LIABILITIES

2007

2006

226,499,344.07 172,834,416.82 4,363,384.40 3,710,180.52 35,462,250.95 5,991,566.26 20,171,459.72 17,416,853.78 56,350,273.31 46,768,927.32 48,971,285.75 37,775,824.18 17,735,854.82 15,267,340.71 409,553,853.02 299,765,109.59

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NON-CURRENT LIABILITIES Liabilities under Financial Lease Contracts-Net (Note 13) 3,345,907.44 6,208,423.73 TOTAL NON-CURRENT LIABILITIES 3,345,907.44 6,208,423.73 TOTAL LIABILITIES 412,899,760.46 305,973,533.32 SHAREHOLDERS’ EQUITY Share Capital Authorized Share Capital 200,000,000 Ordinary Shares @ Baht 1.00 200,000,000.00 200,000,000.00 Issued and Paid-Up Share Capital 200,000,000 Ordinary Shares @ Baht 1.00 200,000,000.00 200,000,000.00 Premiums on Shares Capital 270,000,000.00 270,000,000.00 Retained Earnings (Note 14) Appropriated Legal Reserve 25,000,000.00 25,000,000.00 Unappropriated 1,059,931,677.21 994,561,504.91 TOTAL SHAREHOLDERS’ EQUITY 1,554,931,677.21 1,489,561,504.91 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 1,967,831,437.67 1,795,535,038.23 Notes to financial statements are an integral part of these financial statements.

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED INCOME STATEMENTS For the years ended December 31, 2007 and 2006

Unit : Baht 2007

2006

1,682,255,610.93 33,025,405.81 1,715,281,016.74

1,719,701,898.01 27,953,590.08 1,747,655,488.09

REVENUES FROM OPERATION Sales and Services Other Income Total Revenues

EXPENSES FROM OPERATION Cost of Sales and Services 1,143,798,664.54 1,139,084,153.02 Selling and Administrative Expenses 244,553,733.91 238,969,291.54 Directors’ Remunerations (Note 15) 1,200,000.00 1,200,000.00 Total Expenses 1,389,552,398.45 1,379,253,444.56 PROFIT BEFORE INTEREST EXPENSES AND CORPORATE INCOME TAX 325,728,618.29 368,402,043.53 INTEREST EXPENSES (651,155.08) (875,744.82) (Note 16) (99,707,290.91) (97,934,355.56) CORPORATE INCOME TAX NET PROFIT 225,370,172.30 269,591,943.15

1.13 1.35 EARNINGS PER SHARE NUMBER OF ORDINARY SHARES (UNIT : SHARE) 200,000,000 200,000,000

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Notes to financial statements are an integral part of these financial statements.

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY For the years ended December 31, 2007 and 2006 Unit : Baht Issued and Paid-up Premiums on Retained Earnings Total Share Capital Shares Capital Appropriated Unappropriated Legal Reserve

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Balance as of January 1, 2006 200,000,000.00 270,000,000.00 25,000,000.00 874,969,561.76 1,369,969,561.76 Net Profit for the Year - - - 269,591,943.15 269,591,943.15 Cash paid as Dividend - - - (150,000,000.00) (150,000,000.00) Balance as of December 31, 2006 200,000,000.00 270,000,000.00 25,000,000.00 994,561,504.91 1,489,561,504.91 - - - 225,370,172.30 225,370,172.30 Net Profit for the Year Cash paid as Dividend - - - (160,000,000.00) (160,000,000.00) Balance as of December 31, 2007 200,000,000.00 270,000,000.00 25,000,000.00 1,059,931,677.21 1,554,931,677.21

Notes to financial statements are an integral part of these financial statements.

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED CASH FLOW STATEMENTS For the years ended December 31, 2007 and 2006

Unit : Baht 2007

2006

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CASH FLOW FROM OPERATING ACTIVITIES Net Profit 225,370,172.30 269,591,943.15 Adjustment to Reconcile Net Profit for Cash Received (Payments) from Operation Depreciation 160,634,853.63 151,754,488.00 Amortized Computer Software 4,475,637.14 3,705,557.61 Bad and Doubtful Debts-Trade Accounts Receivable 74,082.07 4,576,092.84 Estimation for Returned Magazines (Reversal Entry) 4,461,912.28 (252,140.10) Doubtful Debts-Other Current Assets (Reversal Entry) (120,000.00) 484,405.00 Gain from Disposal of Fixed Assets (2,600,465.26) (1,414,465.59) Unrealized Gain on Exchange Rate (117,104.64) - 440,591.00 Amortized Interest Expenses under Financial Lease Contracts 650,741.15 428,886,471.91 Profit from Operating Activities before Changes in Operating Assets and Liabilities 392,829,828.67 (Increase)Decrease in Trade Accounts and Notes Receivable (58,367,785.34) (20,050,570.35) (Increase)Decrease in Trade Accounts and Notes Receivable-Related Companies (3,110,887.06) (73,357,211.73) (Increase)Decrease in Inventories (10,274,542.00) 10,444,039.78 (Increase)Decrease in Supplies for Machines 429,874.29 (947,972.71) (Increase)Decrease in Other Prepaid Expenses 2,066,935.61 (1,690,514.27) (Increase)Decrease in Other Current Assets (3,463,832.45) (327,060.45) (Increase)Decrease in Copyright for Books (3,758,386.15) (3,483,957.60) (Increase)Decrease in Other Non-Current Assets (1,419,105.52) (414,283.86) Increase(Decrease) in Trade Accounts and Notes Payable 53,664,927.25 (4,082,506.27) Increase(Decrease) in Advance Received of Printing 29,470,684.69 (2,487,934.99) Increase(Decrease) in Undued Output Tax 2,754,605.94 540,568.25 Increase(Decrease) in Accrued Corporate Income Tax 9,581,345.99 10,453,906.77 Increase(Decrease) in Accrued Expenses 11,195,461.57 4,786,004.64 Increase(Decrease) in Other Current Liabilities 2,585,618.75 3,799,953.66 Net Cash Received from Operating Activities 424,184,744.24 352,068,932.78 Notes to financial statements are an integral part of these financial statements.

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED CASH FLOW STATEMENTS For the years ended December 31, 2007 and 2006

2007

(Unit : Baht) 2006

CASH FLOW FROM INVESTING ACTIVITIES Investment in Short-Term Investment (190,000,000.00) - Purchase of Property, Plant and Equipments (66,836,242.20) (106,090,160.05) Sale of Property, Plant and Equipments 3,119,367.87 1,930,355.21 Investment in Computer Software (8,403,148.87) (4,143,908.70) (Increase) Decrease in Fixed Deposit pledged as Collateral (654.13) (421.61) Net Cash Used in Investing Activities (262,120,677.33) (108,304,135.15) CASH FLOW FROM FINANCING ACTIVITIES Increase (Decrease) in Accounts Payable-Assets - (96,831,112.11) Cash Paid for Liabilities under Financial Lease Contracts (4,829,866.11) (2,093,933.80) Dividend Paid (160,000,000.00) (150,000,000.00) Net Cash Used in Financing Activities (164,829,866.11) (248,925,045.91) Cash and Cash Equivalent Items Increase (Decrease)-Net (2,765,799.20) (5,160,248.28) Cash and Cash Equivalent Items as of the Beginning of the Period 107,248,252.59 112,408,500.87 Cash and Cash Equivalent Items as of the End of the Period (Note 5) 104,482,453.39 107,248,252.59

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Additional Disclosure for Cash Flow : 1) Cash Payment during Period : Interest Paid 651,155.08 875,744.82 Corporate Income Tax 90,054,937.62 87,480,448.79 2) Non-monetary transactions : - For the year ended December 31, 2007 and 2006 the Company acquired assets by entering into financial lease contracts in amount of Baht 1.97 million and Baht 11.57 million respectively. Notes to financial statements are an integral part of these

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AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED NOTES TO FINANCIAL STATEMENTS As of December 31, 2007 and 2006

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1. General Information AMARIN PRINTING AND PUBLISHING PUBLIC COMPANY LIMITED (the Company) was registered on

January 8, 1987, with the Company registration number 0105530001431, and later registered as a public company on

September 15, 1993, with the registration number 0107536000480 and its head office situated at 65/101-103

Chaiyaphruk Road, Taling Chan, Bangkok 10170. Its main business activity is publishing, advertising and the sale of

printed matter. Information concerning its employees for the years ended December 31, 2007 and 2006 are as follows: 2007 2006 1,270 1,183 Average Number of Employees (Unit : Person) Employee Expenses (Unit : Million Baht) 357.62 334.27 2. Basic of Financial Statements Preparation 2.1 The Company financial statements were prepared in accordance with the generally accepted accounting

principles under the Accounting Act B.E. 2543 which implies the accounting standards determined by the Federation of

Accounting Professions, set up in accordance which the Accounting Professional Act B.E. 2547, announced to be

effective, and in accordance with the determination of the office of the Securities and Exchange Commission on the

subject of preparation and presentation of the financial reports. 2.2 The Federation of Accounting Professionals has issued the Federation of Accounting Professionals

announcement No. 9/2550, 38/2550 and 62/2550 (already announced in the Royal Gazettes) on the Thai Accounting

Standards by announcing the application of the Thai Accounting Standard No. 51 on the intangible assets and to apply

the following accounting standards instead of the former Thai Accounting Standards which have been revoked: No. 25 (Revised 2007) Cash Flow Statements No. 29 (Revised 2007) Rental Contracts No. 31 (Revised 2007) Inventories No. 33 (Revised 2007) Borrowing Costs No. 35 (Revised 2007) Presentation of Financial Statements No. 39 (Revised 2007) Accounting Policies, Changes in Accounting Estimates and Errors No. 41 (Revised 2007) Interim Financial Reporting No. 43 (Revised 2007) Business Combinations No. 44 (Revised 2007) Consolidated and Separate Financial Statements No. 45 (Revised 2007) Investment in Associated Company

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No. 46 (Revised 2007) Interests in Joint Ventures No. 49 (Revised 2007) Construction Contracts For the Thai Accounting Standards No. 44-46, which have to apply to the financial statements for the

accounting period that commence on or after January 1, 2007 onward, which the Company has already

applied for the year 2007; nevertheless, the effect from the said change of the accounting standards has no

effect to the Company’s financial statements. For the remaining Thai Accounting Standards, which have to

apply to the financial statements for the accounting period that commence on or after January 1, 2008.

The management of the Company has evaluated and thought the said Thai Accounting Standards would not

have material effect on the financial statements for the year the said Thai Accounting Standards have to be

applied. 2.3 The financial statements for the year ended December 31, 2006, have been reclassified to

correspondence with the accounting classification for the present year and have no effect to the reported

net profit or shareholders’ equity. 2.4 The Company prepared its statutory financial statements in the Thai version in conformity

with generally accepted accounting principles in Thailand. The accounting standards used may be different

from generally accepted accounting principles in other countries. For the convenience of the readers of

the financial statements, English version have been prepared from the statutory financial statements in

Thai version that are issued for domestic reporting purposes. 3. Summary of Significant Accounting Policies The significant accounting policies of the Company are as follows : 3.1 Recognition of Revenues and Expenses - Sales are recognized when goods have already been delivered to customers except goods on

consignment whose sales are recognized when such goods are delivered by the consignees. - Revenue from advertising is recognized once the advertisement is released. - Other incomes included revenue from travel business, training and seminars and organizing

exhibitions and expenses are recorded in accrual basis. 3.2 Cash and cash equivalent transactions included bank deposit in types of savings, current, fixed

deposit and short term investment not exceeding three-months with no guarantee obligation. 3.3 Short-term investment in debt instrument showed at cost. 3.4 Allowance for doubtful debts is made by considering the uncollectability ability of each account

receivable. 3.5 Allowance for returned magazines is estimated from previous experience by the management. 3.6 Inventories are valued at cost or net realizable value, whichever is lower as follows:

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- Finished goods and completed printing assignment jobs are reflected at specific cost. - Printing assignment in process and works in process are valued at mutual cost by percentage of

completion method. - Supplies are valued at cost under FIFO method. 3.7 Investments in equity instrument are recorded by cost method and recorded loss from impairment

whenever there is an indication of such impairment of the investment. 3.8 Lands are recorded initially at cost. Building and equipments are recorded at cost after deduction of

accumulated depreciation and depreciated on a straight-line method using approximate useful life as follows: - Factory and Building Improvements 20 years - Machines and Equipments 5-10 years - Tools, Vehicles and Office Equipments 5 years 3.9 Computer software is amortized on the straight-line method on the estimate useful life of 1-3 years. 3.10 Impairment of assets, the Company assesses at each reporting date whether there is an indication

that an asset may be impaired. If any such indication exists, the Company makes an estimate of the asset’s

recoverable amount. Where the carrying amount of the asset exceeds its recoverable amount, the asset is

considered impaired and is written down to its recoverable amount. Impairment losses are recognized in the

income statement. (An asset’s recoverable amount is the higher of fair value less costs to sell and value in use.) 3.11 Financial lease agreement recorded as both an asset and a liability in the balance sheet at the same

amount equivalent to fair value of leased asset as at the commencing date of the agreement or the present value

of the minimum amount payable under the agreement whichever is lower. The discount rate to be used in

calculating such present value is the interest rate specified in the lease agreement. The directly related initial

cost is included in the cost of the asset and the paid lease fee will be appropriated partly as financial expense

and other to reduce the principle. The said financial expense will be apportioned to various periods throughout

the term of agreement so that the interest rate compared the remaining amount of debt at each period is

constant. Depreciation policy for lease assets conforms to depreciable assets owned by the Company. 3.12 Lease operation contract in hiring assets which the risk and ownership of the hired assets remain

with the lessor classified as lease operation. The lease fee paid under lease operation recorded as expense

throughout the term of the contract. 3.13 Items denominated in foreign currencies are recorded in Baht at prevailing rates of exchange when

the transactions occur, while the remaining balance of assets and liabilities denominated in foreign currencies

at the year end are converted into Baht at the prevailing rates on that date, and the gains or losses arising

from such conversion is included in the related income statement. 3.14 Inter-transaction between the related parties and related companies The related parties and related companies with the Company meant the parties or the companies that

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have the controlling power to the Company, controlled by the Company, either directly or indirectly, or under

the same control with the Company, including the holdings companies for the subsidiary and group

companies. Furthermore, the related parties and related companies also meant the associated companies

and the parties whose holding the shares with voting rights, either directly or indirectly, and have significant

influence to the Company, important management, directors or the employees of the Company who have

the power to plan and control the Company’s operation. 3.15 Employee benefits The Company has set up the provident fund for the type that the contribution plan has already been

determined. The provident fund’s asset has been separated from the assets of the Company and manages

by an outside fund manager. The said provident fund receives contributions from the employees and

the Company. The contribution from the Company is recorded as the expense in the income statements

for the accounting period the transaction incurred. However, the Company did not set up the liability for

the employee benefits according to the Thai Labor Law. 3.16 Corporate income tax is recognized as expenses when the Company is liable to pay such tax. 3.17 Earnings per share is calculated by dividing net profit with the weighted average number of issued

and paid-up ordinary shares during the year. 3.18 Sectoral Business Operations The business sector is the business sector that source products or provide services which have

different risks and return from the risks and return of the products or services provided by other business

sectors. The sectoral business operation is disclosed under the separate business sectors of the Company. 3.19 Financial instruments consist of financial assets carried on the balance sheet include cash, bank

deposits, investments and trade accounts receivable, financial liabilities carried on the balance sheet include

trade accounts payable and loan. Related accounting policies of financial assets and liabilities were disclosed

in each related section. 3.20 Preparation of the financial statements in conformity with generally accepted accounting

principles requires management to make estimates and assumptions that affect the reported amounts and

disclosure. The actual results may differ from those estimates. 4. Transactions with Related Parties The Company incurred accounting transactions with its related parties with the same group of

shareholders or directors. The remaining balances and material inter-transactions between the Company and

its related parties are as follows:

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4.1 Inter-assets and liabilities

(Unit : Baht) Type of Transactions/Company’s name Relationship As of December 31, 2007 2006 - Trade Accounts and Notes Receivable - Net Amarin Book Center Co., Ltd. Related Company 162,113,044.41 163,153,065.13 Amarin Food and Beverage Co., Ltd. Related Company 16,050.00 202,025.00 Amarin Trading Co., Ltd. Related Company - 125,029.50 162,129,094.41 163,480,119.63 - Consigned goods Amarin Book Center Co., Ltd. Related Company 101,573,641.11 109,031,484.88 - Short-term loan Amarin Book Center Co., Ltd. Related Company Beginning Balance - - Increase during the period - 30,000,000.00 Repaid during the period - (30,000,000.00) Ending Balance - As of December 31, 2006, the short-term loan from the related company was a loan in the form of promissory notes with

interest rate of 4.65% per annum. The Company had already repaid the full amount of the loan.

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4.2 Inter-revenues and expenses

(Unit : Baht) Type of Transactions/Company’s name Relationship For the years ended December 31, 2007 2006 - The Value of Merchandise Sales Amarin Book Center Co., Ltd. Related Company 484,988,732.97 460,888,366.47 Amarin Food and Beverage Co., Ltd. Related Company 41,600.00 187,500.00 456,750.00 Amarin Trading Co., Ltd. Related Company 172,780.00 485,203,112.97 461,532,616.47 The prices of merchandises sold and purchased are equivalent to market prices less trade discount for the years ended

December 31, 2007 and 2006 of 37.90%-50.00%, the same amount for both years, except book printing contracts that are

chargeable at prices equal to that charged to outside parties. (Unit : Baht)

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For the years ended December 31, Type of Transactions/Company’s name Relationship 2007 2006 - The Value of Other Incomes Amarin Book Center Co., Ltd. Related Company 2,433,625.41 1,589,978.72 1,308.41 Amarin Food and Beverage Co., Ltd. Related Company 51,401.90 2,485,027.31 1,591,287.13 - Interest Expenses Amarin Book Center Co., Ltd. Related Company - 43,315.07 The majority of the other incomes are related to sale of old books at 10% of the cover prices.

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4.3 Nature of relationship Company’s name Relationship Related By Amarin Book Center Co., Ltd. Related Company Direct shareholding 19% Amarin Food and Beverage Co., Ltd. Related Company Indirect shareholding by Amarin Book Center Co., Ltd. Related Company Indirect shareholding by Amarin Book Center Co., Ltd. Amarin Trading Co., Ltd. 5. Cash and Cash Equivalents Consisted of : (Unit : Baht) As of December 31, 2007 2006 Cash and Cash Equivalents 14,482,453.39 7,248,252.59 100,000,000.00 Short-term Investment 90,000,000.00 104,482,453.39 107,248,252.59 As of December 31, 2007 and 2006 short-term investment was in the form of bill of exchange with the maturity period less

than 1 month with a financial institution, bearing the interest rate of 4.20% per annum and 4.85%-4.95% per annum respectively. 6. Short-Term Investment As of December 31, 2007, short-term investment was in the form of bond with a financial institution, with the maturity period

less than 6 months, bearing the interest rate of 3.12%-3.18% per annum.

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7. Trade Accounts and Notes Receivable - Net As of December 31, 2007 and 2006, trade accounts and notes receivable are classified by aging overdue as follows: (Unit : Baht) As of December 31, 2007 2006 237,941,655.09 187,687,591.27 Trade Accounts Receivable within Credit Term Trade Accounts Receivable classified by Aging Overdue as follows : - Less than 3 months 59,321,114.80 71,305,933.59 - More than 3 months to 6 months 6,862,900.42 2,049,122.61 - More than 6 months to 12 months 2,696,991.44 2,848,846.65 7,162,945.94 - Over 12 months 9,613,275.73 Total 316,435,937.48 271,054,440.06 Accrued Income - Book Printing Contracts 19,823,465.23 6,416,643.33 11,711,203.08 Notes Receivable 11,290,669.10 Total Trade Accounts and Notes Receivable 347,550,071.81 289,182,286.47 Less Allowance for Doubtful Debts - Trade Accounts Receivable (5,890,783.78) (6,382,899.21) (1,493,613.50) - Notes Receivable (2,059,811.00) Net 339,599,477.03 281,305,773.76

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8. Trade Accounts and Notes Receivable-Related Companies - Net As of December 31, 2007 and 2006, trade accounts and notes receivable from related companies are classified by aging overdue as follows: (Unit : Baht) As of December 31, 2007 2006 Trade Accounts and Notes Receivable under Credit Term 142,776,120.19 136,931,477.96 Trade Accounts and Notes Receivable classified by Aging Overdue as follows : - Less than 1 month 35,247,736.79 37,981,491.96 - More than 1 month to 3 months - - 11,658.00 - Over 3 months 11,658.00 Total Trade Accounts and Notes Receivable 178,035,514.98 174,924,627.92 Less Allowance for Returned Magazines (15,906,420.57) (11,444,508.29) Net 162,129,094.41 163,480,119.63 As of December 31, 2007 and 2006, the allowance for the whole amount of returned magazines is estimated basing on the

estimated number of returned magazines from clients not greater than agreed-upon percentage. This percentage is calculated from

the management’s past experience. During the second quarter of 2006, the Company has changed the policy for the estimation of

returned magazines. Previously, the Company accepted the unlimited number of returned magazines with no time limit. Currently,

the Company accepts the total return that is not exceed the estimation for the returned magazines in percentages for each sale

(except new magazines) and the returning period is within 1 year after sale.

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9. Inventories Consisted of: (Unit : Baht) As of December 31, 2006 2007 Consigned Goods 101,573,641.11 109,031,484.88 Finished Goods 9,803,639.47 23,069,868.99 Works in Process 41,489,325.26 11,263,771.10 Printing Supplies 21,927,809.00 21,010,062.44 Supplies 2,105,067.93 1,910,542.39 Film 114,808.98 454,019.95 Total 177,014,291.75 166,739,749.75

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10. Investments in Equity Instruments - Net Consisted of : (Unit : Baht) Cost Method Type of Business Paid-up Capital Percentage of As of December 31, Shareholding 2007 and 2006 Amarin Book Center Co., Ltd. Book Seller 10,000 19% Less Operating result recognized until the reduced percentage of investment date Net Multimedia Creation Co., Ltd. Multimedia Services 30,000 19% Less Allowance for Impairment of Investment Net WPS (Thailand) Co., Ltd. Printing Services 500,000 0.5% Total

1,900,000.00 (1,900,000.00) - 2,896,578.00 (2,896,578.00) - 2,500,000.00 2,500,000.00

As of December 31, 2007 and 2006, the Company had investment in Amarin Book Center Co., Ltd. at only 19%, and the

Company has no longer significant influence on that company. The Company then recorded book value of this investment as cost

after the date that the Company no longer used equity method. Investment in Multimedia Creation Co., Ltd. is shown at cost, because the Company does not hold any influential control in

that related company. For the years ended December 31, 2007 and 2006, the Company received no dividends from investment in equity

instruments.

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11. Property, Plant and Equipments - Net Consisted of :

Land

Factory

Building Machine Tools Improvement and Equipments

Vehicles

(Unit : Baht)

Office Assets in Total Equipments Installment and Construction

Cost : As of December 31, 2006 156,700,000.00 334,046,872.24 80,718,439.43 787,255,249.78 134,522,176.24 50,751,655.70 202,316,613.10 49,057,198.81 Purchases - - 8,098,405.88 5,429,042.14 17,785,781.76 6,069,580.10 12,305,004.89 19,118,239.98 Transfer In - 72,000.00 49,986,216.02 5,318,163.50 5,476,456.16 - 6,943,144.11 - Disposal - - - (3,419,878.75) (3,822,715.46) (2,469,176.00) (647,412.11) - Transfer Out - - - - - - - (67,795,979.79) As of December 31, 2007 156,700,000.00 334,118,872.24 138,803,061.33 794,582,576.67 153,961,698.70 54,352,059.80 220,917,349.99 379,459.00 Accumulated Depreciation : As of December 31, 2006 - (85,928,923.35) (27,867,676.79) (388,679,711.45) (91,888,285.84) (34,330,477.91) (133,983,589.23) - Depreciation for the year - (17,160,654.48) (6,100,657.68) (80,121,343.74) (19,262,205.57) (6,679,983.44) (31,310,008.72) - Disposal - - - 3,419,876.75 3,386,969.20 2,405,985.98 627,447.78 - As of December 31, 2007 - (103,089,577.83) (33,968,334.47) (465,381,178.44) (107,763,522.21) (38,604,475.37) (164,666,150.17) - Net Book Value : As of December 31, 2006 156,700,000.00 248,117,948.89 52,850,762.64 398,575,538.33 42,633,890.40 16,421,177.79 68,333,023.87 49,057,198.81 As of December 31, 2007 156,700,000.00 231,029,294.41 104,834,726.86 329,201,398.23 46,198,176.49 15,747,584.43 56,251,199.82 379,459.00 The Depreciation as appeared in Income Statement for the Year ended December 31, 2006 December 31, 2007

1,795,368,205.30 68,806,054.75 67,795,979.79 (10,359,182.32) (67,795,979.79) 1,853,815,077.73 (762,678,664.57) (160,634,853.63) 9,840,279.71 (913,473,238.49) 1,032,689,540.73 940,341,839.24 151,754,488.00 160,634,853.63

As of December 31, 2007 and 2006, vehicles and tools with net book value of Baht 7.15 million and Baht 9.37 million respectively

were under financial lease contracts as mentioned in the notes to financial statements no. 13. As of December 31, 2007 and 2006, land and construction in net book value of Baht 71.76 million and Baht 74.38 million

respectively were pledged as collaterals against banking credit facilities received from commercial banks as mentioned in the notes

to financial statements no. 19.1. In addition, the Company had assets which are fully depreciated but still in use for operation with

cost in amount of Baht 342.50 million and Baht 282.27 million respectively.

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12. Computer Software - Net Consisted of : (Unit : Baht) Computer Software Computer Software in Total Development Process Cost : As of December 31,2006 11,604,390.28 - 11,604,390.28 Purchases 3,320,148.65 5,083,000.22 8,403,148.87 As of December 31, 2007 14,924,538.93 5,083,000.22 20,007,539.15 Accumulated Depreciation : As of December 31, 2006 (4,307,586.74) - (4,307,586.74) Amortized During the Year (4,475,637.14) - (4,475,637.14) As of December 31, 2007 (8,783,223.88) - (8,783,223.88) Net Book Value : As of December 31, 2006 7,296,803.54 - 7,296,803.54 As of December 31, 2007 6,141,315.05 5,083,000.22 11,224,315.27 Amortized Computer Software as appeared in Income Statement For the year ended December 31, 2006 3,705,557.61 For the year ended December 31, 2007 4,475,637.14

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13. Liabilities under Financial Lease Contracts - Net Consisted of : (Unit : Baht) As of December 31, 2007 2006 Liabilities under financial lease contracts - due in less than 1 year 5,005,674.00 4,509,408.00 - due in 1-5 years 3,647,588.27 6,824,888.00 Total liabilities under financial lease contracts 8,653,262.27 11,334,296.00 (943,970.43) Less Future interest charge on the financial lease contracts (1,415,691.75) Present value of liabilities under financial lease contracts 7,709,291.84 9,918,604.25 Less Current portion of long - term liabilities (3,710,180.52) (4,363,384.40) Liabilities under financial lease contracts - net 6,208,423.73 3,345,907.44 The Company entered into financial lease contracts on vehicles, camera with accessories and computer equipments for period of 3-5 years with two leasing companies. As of December 31, 2007 and 2006, these financial lease contracts consist of 5 contracts and 3 contracts respectively, which the total leasing fee must be paid at Baht 0.42 million per month and Baht 0.37 million per month respectively.

134

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14. Legal Reserve and Dividend Paid The minutes of the annual general meeting No.1/2007 held on April 27, 2007, it was unanimously

resolved to pay dividends from the result of the operation in 2006 for 200 million shares at Baht 0.80 per share

aggregating to Baht 160.00 million. The dividends were paid on May 25, 2007. The minutes of the annual general meeting No.1/2006 held on April 10, 2006, it was unanimously

resolved to pay dividends from the result of the operation in 2005 for 200 million shares at Baht 0.75 per share

aggregating to Baht 150.00 million. The dividends were paid on May 10, 2006. Under the Public Company Act B.E. 2535, the Company should appropriate a part of its retained

earnings as a legal reserve fund of not less than 5% of net profit less any retained loss carried forward

(if applicable) until the reserve fund holds not less than 10% of registered capital. The legal reserve could not

be used to pay dividend. 15. Directors’ Remuneration The directors’ remuneration is benefits paid to directors of the Company as per section 90 of the

Public Companies Limited Act excluding salaries and related fringe benefits paid to executive directors. 16. Corporate Income Tax For the years ended December 31, 2007 and 2006, the Company calculated corporate income tax

at 30% and 25%-30% respectively of profit before tax but after adding back expenses not allowed for

tax calculation. The difference in tax rates is due to the fact that the Company ceased to receive tax benefit

under Administrative Decree No. 387 B.E. 2544 which authorised the decrease of tax rate to 25% of net profit

particularly for the portion not more than Baht 300 million covering the period of 5 consecutive accounting

years. 17. Provident fund The Company and employees of the Company have jointly established a provident fund in

accordance with the Provident Fund Act B.E. 2530. The Company and the employees contributed to the fund

monthly at the rate of 3.00% of basic salary. The fund, which is managed by Thanachart Fund Management

Co., Ltd. will be paid to the employees upon termination in accordance with the fund rules. During the years

ended December 31, 2007 and 2006, the Company’s contribution amounted to approximately Baht 4.70

million and Baht 4.43 million respectively.

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18. Disclosure of Sectoral Business Operations The Company undertakes operations in production and distributions of books, arrangement of travel business, training and

seminars, organizing exhibitions and television program’s production which operation in one geographical area, namely Thailand

were as follows : Informations about sectorial business operations For the years ended December 31, 2007 and 2006 (Unit : Million Baht)

Production and

Travel Business and

Organizing Exhibitions and

Distributions of Books Training and Seminars Television Program’s Production

2007 2006 2007 2006 2007 2006 Revenues from Operation 1,572.76 1,590.92 31.21 32.39 111.31 124.35 Profit from Operation 288.97 312.60 0.45 4.78 36.31 51.02 Interest Expenses Corporate Income Tax Net Profit Property, Plant and Equipments - net as of December 31, 923.71 1,031.81 14.03 0.53 2.60 0.35 Central Assets as of December 31, Total Assets as of December 31,

2007 1,715.28 325.73 (0.65) (99.71) 225.37 940.34 1,027.49 1,967.83

2006 1,747.66 368.40 (0.88) (97.93) 269.59 1,032.69 762.85 1,795.54

136

Total

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19. Obligations and Contingent Liabilities 19.1 In addition to liabilities as reflected in the financial statements, the Company constitutes other obligations and

contingent liabilities due to banks as follows: (Unit : Million Baht) As of December 31 2007 2006 Million USD Million Baht Million USD Million Baht Letters of Guarantee - 15.35 - 11.85 Letters of Guarantee (Unutilized) - 21.65 - 25.15 Forward Foreign Exchange Contracts (Unutilized) 1.25 - 1.25 - Letters of Credit (Unutilized) - 50.00 - 50.00 Bank Overdrafts and Short-Term Loans (Unutilized) - 270.00 - 270.00 The Company has pledged parts of land together with the constructions as mentioned in the notes to the financial

statements no.11 as collaterals against the said credit facilities received and obligation.

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19.2 Other Contracts 19.2.1 Construction Contract The Company has renovated the Arun Amarin Publishing House by entering into the contract with

a large construction company for the total value of Baht 39.70 million. During the first quarter of 2006, the contract

has been amended by increasing the contractual value by Baht 5.52 million aggregating to the total engagement

value of Baht 45.22 million. According to the contract, as of December 31, 2006, the Company has remaining work

for the amount of Baht 9.03 million. As of December 31, 2007, the Company has already paid the full amount under

the contract. 19.2.2 Engagement Contract As of December 31, 2007 and 2006, the Company entered into literary work engagement contract

for the total contractual value of Baht 3.80 million and the remaining work under the contract were Baht 0.89 million

and Baht 1.65 million respectively. 19.2.3 Copyright Contract The Company entered into agreements with the owners of various successful works in payment of

consideration at the percentage of number of publications produced. 19.2.4 Purchase and Sale Contract As of December 31, 2007, the Company entered into a contract to purchase software program

package inclusive of after-sale service for the total value of Baht 9.67 million. The remaining value due under the

contract is presently at Baht 3.99 million. As of December 31, 2006, the Company entered into purchase and sale contract for the

kitchenware to be used in a cooking school under the Arun Amarin Publishing House Project to the total value

of Baht 3.65 million. The remaining value due under the contract was at Baht 0.73 million. As of December 31, 2007,

the Company has paid the whole remaining amount.

138

20. Financial Instruments Policy on Financial Risk Management The Company possesses risk regarding to the change of market interest rate and in currency exchange

rate and from nonperformance of contractual obligations by counter parties. The Company will consider using

appropriate financial instruments when it considers necessary to manage such risks. However, the Company does

not have any policy to hold or issue any financial instruments for speculation or for trading.

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Risk on Interest Rates Risk on interest rates is derived from fluctuation of market interest rates in the future which will affect the

Company’s operating results and cash flows. The Company takes risk on interest rates due to having bank deposits

and short-term investment at financial institutions. However, such financial assets bear interest rates closed to

market interest rates, against which the Company anticipate no material risk from interest rates. Risk on Exchange Rates Regarding risks on exchange rates, it is mainly involved with purchases of assets in foreign currencies.

As of December 31, 2007 and 2006, the Company obtained liabilities in foreign currencies as follows: As of December 31, Currency 2007 2006 99,710.20 62,210.91 US Dollar Risk on Credit Provision The Company takes risk from credit provision in relation to trade accounts receivable. However, since the

Company always has conservative policy in granting sound credit provision and carefully considered the

appropriated allowance for doubtful debts; thus, it believes that the risk which the debtors will not repay is minimal. Fair Value Since the financial assets and liabilities are mainly in short-term types. Hence, the book values of such

financial assets and liabilities presented herein do not materially differ from fair values.

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21. Approval of Financial Statements These financial statements have been approved for issuance by the Managing Director on February 18,

2008.

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PRODUCTION :  AMARIN  PUBLISHING  SERVICES  DIVISION Amarin  Printing  and  Publishing  Public  Co., Ltd.  65/101 - 103  Chaiyaphruk  Rd.,  Taling  Chan,    Bangkok  10170  Tel.  +66-2422-9999  Ext.  4181, 4182  Fax.  +66-2422-9999  Ext.  4185 PRINTED BY :  Printing  Business  Division,  Amarin  Printing  and  Publishing  Public  Co., Ltd.  65/16  Chaiyaphruk  Rd.,  Taling  Chan,  Bangkok  10170  Tel.  +66-2422-9000,  +66-2882-1010 Fax.  +66-2433-2742,  +66-2434-1385  E-mail: info@amarin.co.th  Homepage: www.amarin.com

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51-ME-001_COVER_2C_ENG+THAI_W.aiPage 1

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Amarin 07  

AMARIN_2007 AMARIN PRINTING & PUBLISHING PCL Annual Report 2007

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